Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A) The dollar return is a more useful measure to compare performance because it more accurately reflects the change in wealth of the investor.
• B) A dominant portfolio is one that has the highest risk and highest return within a set of portfolios.
• C) By adding stocks to your portfolio, it is possible to effectively eliminate nearly all of the market risk.
• D) None of these choices are correct.

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Definitions:

F-ratio

A statistic used in ANOVA to compare the variance among group means to the variance within groups; it assesses whether the means are significantly different.

Variability

A statistical measure that indicates the extent to which data points in a dataset differ from the average value.

F-ratio

The ratio of variance between groups to the variance within groups in an ANOVA test, used to determine if there are any significant differences between group means.

Denominator

The bottom part of a fraction that indicates into how many parts the whole is divided.