The Friedman Analysis of Variance by Ranks Is Typically Used

question 46

Multiple Choice

The Friedman analysis of variance by ranks is typically used to analyze the relationship between two variables when:

• A)scores on the dependent variable are in the form of ranks across conditions for each subject
• B)the independent variable is within-subjects in nature
• C)the independent variable has three or more levels
• D)all of these

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Definitions:

Required Return

The minimum rate of return on an investment that is necessary for an investor to consider making that investment.

Market Risk

The risk of losses in positions arising from movements in market prices.

Diversify

The strategy of spreading investments across various financial assets, industries, or other categories to reduce risk.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks; it is used to estimate the cost of equity.