Use the Information for the Question(s)below

question 24

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share,200 shares of Lowes (LOW) at $30 per share,and 100 shares of Ball Corporation (BLL) at $40 per share.
-Suppose over the next year Ball has a return of 12.5%,Lowes has a return of 20%,and Abbott Labs has a return of -10%.The weight on Abbott Labs in your portfolio after one year is closest to:

• A)-10.0%
• B)43.5%
• C)45.0%
• D)50.0%

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Definitions:

Statistical Tests

Procedures used in statistics to determine whether hypotheses about the distribution of data can be rejected, based on sample data.

Sample Size

The number of observations or subjects included in a study.

Effect Size

A quantitative measure of the magnitude of a phenomenon, used to indicate the size of an effect or difference found in a study.

Type I Error

The incorrect rejection of a true null hypothesis, or a "false positive," in hypothesis testing, indicating that the test suggests an effect that does not actually exist.