A Sector Fund

question 2

Multiple Choice

A sector fund:

• A)tends to perform consistently from one year to the next.
• B)is usually highly diversified.
• C)rarely outperforms other types of funds.
• D)concentrates on investing in one industry or one commodity.
• E)is best evaluated by its past performance.

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Definitions:

Chi-Square

A statistical test used to assess the differences between categorically grouped data by comparing the observed frequencies of groups with expected frequencies derived from a hypothesis.

Row Variable

A variable that constitutes the basis for organizing data in rows in a table or matrix, often used in cross-tabulation.

Column Variable

A variable represented in one of the vertical columns of a data table, often used in multivariate analysis and cross-tabulations.

Critical Value

A point on the scale of a statistical distribution that corresponds to a specified level of significance, used in hypothesis testing to determine whether to reject the null hypothesis.