To Determine Whether Portfolio Performance Is Statistically Significant Requires

question 67

Multiple Choice

To determine whether portfolio performance is statistically significant requires

• A) a very long observation period due to the high variance of stock returns.
• B) a short observation period due to the high variance of stock returns.
• C) a very long observation period due to the low variance of stock returns.
• D) a short observation period due to the low variance of stock returns.
• E) a low variance of returns over any observation period.

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Definitions:

Corresponding Emotion

An emotional response that is directly related to, or caused by, a specific event, action, or thought.

Facial-Feedback Hypothesis

The theory that suggests the act of expressing a facial emotion can cause the emotional experience itself, such as smiling leading to feelings of happiness.

Positive Feelings

Emotions and sentiments that are pleasant or affirmative, such as happiness, joy, or satisfaction.

Simulating Anger

The act of pretending or mimicking the emotion of anger without actually feeling it, often for the purpose of study or understanding its effects.