What Is the Expected Return on a Security Given the Following

question 52

Multiple Choice

What is the expected return on a security given the following information?

• A)8.78 percent
• B)9.43 percent
• C)9.97 percent
• D)10.22 percent
• E)11.48 percent

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Definitions:

Chi-Squared Test

A statistical test used to determine if a significant relationship exists between two categorical variables by comparing observed and expected frequencies.

Contingency Table

A table used in statistics to summarize the distribution of two categorical variables, showing the frequency at which certain combinations of the variables occur.

Alternative Hypothesis

The hypothesis that there is a significant difference between groups or conditions, as opposed to the null hypothesis.

Contingency Table

A contingency table is a type of table in a matrix format that displays the frequency distribution of the variables.