Malkiel (1995)calculated That the Average Alphas,or Abnormal Returns,on a Large

question 48

Multiple Choice

Malkiel (1995) calculated that the average alphas,or abnormal returns,on a large sample of mutual funds between 1972 and 1991 were

• A) significantly positive.
• B) significantly negative.
• C) statistically indistinguishable from zero.
• D) positive before 1981 and negative thereafter.
• E) negative before 1981 and positive thereafter.

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Definitions:

Double-blind Study

A research method in which neither the participants nor the researchers know who is receiving the experimental treatment, to prevent bias.

Independent Variable

In an experiment, the variable that is intentionally changed or manipulated to observe its effect on a dependent variable.

Statistically Significant

A term used to describe a result that is not likely to occur randomly, but rather is likely to be attributable to a specific cause.

Replicable

The ability of a study or experiment to be repeated with similar results, underscoring the reliability of the findings.