The Next Questions Are Based on the Following Information

question 19

Multiple Choice

The Next Questions Are Based On The Following Information:
The U.S.Postal Service advertises that at least 63.4% of all third class mail is read by the recipients.An environmental group,concerned about waste production wants to test this assertion.They take a sample of 220 households and find that only 58.7% read their third class mail.
-What are the null and alternative hypotheses for the environmental group's test?

• A)H₀ : P = 0.634 and H₁ : P > 0.634
• B)H₀ : P = 0.634 and H₁ : P ≠ 0.634
• C)H₀ : P = 0.634 and H₁ : P < 0.634
• D)H₀ : P > 0.634 and H₁ : P ≤ 0.634

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Definitions:

Investment Opportunity Set

The range of possible investment options available to an investor, based on their risk tolerance and investment objectives.

Efficient Frontier

A graph representing the set of portfolios that provides the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Capital Market Line

A line that depicts the risk-reward profile of investable assets, showing the rate of return for varying levels of risk, based on the market risk premium and the risk-free rate.

Minimum-Variance Point

The point on a portfolio's efficient frontier at which the portfolio has the lowest level of volatility or risk for its level of expected return.