Historically,the Average Arithmetic Return of Hypothetically Prosperous Company Has Been

question 47

Multiple Choice

Historically,the average arithmetic return of Hypothetically Prosperous Company has been 16% while the average geometric return has been 14%.If the returns have been normally distributed,the variance of returns of this stock has been _________.

• A) 1%
• B) 2%
• C) 4%
• D) 16%
• E) none of these

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Definitions:

Expected Frequencies

In statistics, these are the counts predicted by a hypothesis test for categories in a contingency table, based on the distribution assumptions of the test.

Chi-square Statistic

The Chi-square statistic is a measure used in statistics to compare observed data with data expected under a specific hypothesis, often used in tests of independence.

Expected Frequencies

Predicted counts of occurrences across different categories based on a statistical model.

Chi-square Statistic

A measure used in statistics to analyze the independence of two categorical variables and assess how likely it is that any observed difference between sets occurred by chance.