One Way to Detect an Association Between Variables Is the Chi

question 17

Multiple Choice

One way to detect an association between variables is the chi square statistic.Variables are associated if obtained chi square is

• A)greater than zero.
• B)less than zero.
• C)greater than 10.
• D)greater than 100.

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Definitions:

Well-Diversified Portfolio

A portfolio containing a wide variety of investments which aims to reduce risk by spreading investments across different assets.

Single Index Model

A simplified model to estimate the return of a stock based on the performance of a single market index and the stock's sensitivity to that index.

Portfolio's Sigma

A statistical measure representing the volatility or risk associated with a portfolio's returns.

Beta

A measure of the systematic risk of a security or a portfolio in comparison to the market as a whole.