In Computing Spearman's Rho,the Sum of the D Column Must

question 46

Multiple Choice

In computing Spearman's rho,the sum of the D column must be

• A)1.
• B)N.
• C)0.
• D)the mean rank squareD.

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Definitions:

Optimal Risky Portfolio

According to modern portfolio theory, this portfolio provides the maximum expected return for a specific risk level or minimizes the risk for a set expected return.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, commonly used in finance to quantify the risk associated with a given investment.

Perfectly Negatively Correlated

A situation in which two variables move in opposite directions with a correlation coefficient of -1, implying that when one variable increases, the other decreases.

Risk-Free Portfolio

An investment group that is considered to have no risk of financial loss, typically represented by government bonds.