_____ Refers to the Extent to Which Conclusions Drawn on the Basis

question 9

Multiple Choice

_____ refers to the extent to which conclusions drawn on the basis of a statistical test (for example,rejection of the null hypothesis) are unaffected by violations of the assumptions underlying the test.

• A)validity
• B)reliability
• C)robustness
• D)none of these

---

Definitions:

Interest Rate Fluctuations

Variations in the interest rate over time, which can affect the value of investments, loans, and savings.

No-Arbitrage Condition

A theoretical situation where there is no possibility of risk-free profits – prices in the financial markets should exclude the possibility of arbitrage opportunities.

Risk-Return Dominance

A principle stating that an investment or portfolio is more desirable if it has a higher expected return for a given level of risk, or lower risk for a given level of expected return.

Market Equilibrium

Market Equilibrium is a condition in a market where the quantity demanded by consumers equals the quantity supplied by producers, resulting in stable prices.