The Tendency of Security Prices to Move Together Is One

question 38

True/False

The tendency of security prices to move together is one source of systematic risk.

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Definitions:

F Ratio

A statistical measure used in analysis of variance (ANOVA) to compare the variance among group means to the variance within groups.

F Test

A statistical test used to determine if there are significant differences between the variances of two or more groups.

ANOVA

Analysis of Variance, a statistical method used to compare the means of three or more samples to determine if at least one of the means is significantly different from the others.

T Test

A statistical test used to determine if there is a significant difference between the means of two groups.