When You Are Examining the Record of a Perfect Market

question 73

Multiple Choice

When you are examining the record of a perfect market timer it is important to realize that

• A) the average rate of return is a misleading measure.
• B) the average excess return is a misleading measure.
• C) the standard deviation is a misleading measure.
• D) the coefficient of skewness is a misleading measure.
• E) he has based most of his decisions on inside information.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values of a dataset deviate from the mean.

Standardized

Pertains to the process of making something conform to a standard, often through establishing consistency in measure or procedure to ensure comparability.

IQ Score

A measure of a person's cognitive abilities in relation to their age group, typically reflecting a relative performance in a range of mental tasks.

98th Percentile

A statistical measure indicating that an individual's performance surpasses 98% of the reference group.