Stock Returns Can Be Explained by the Stock's _________ and the Stock's

question 9

Multiple Choice

Stock returns can be explained by the stock's _________ and the stock's __________.

• A)Beta; unique risk
• B)Beta; market risk
• C)Unique risk; firm-specific risk
• D)Aggressive risk; defensive risk

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Definitions:

T-test for Dependent Means

A statistical test used to compare the means of two related groups.

Alternative Hypothesis

A statement proposing a relationship between variables, differing from the null hypothesis, and is tested for possible acceptance.

µ

The symbol for the mean (average) of a population in statistics.

Null Hypothesis

A statement in statistical testing that assumes there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.