Use the Table for the Question(s)below

question 67

Multiple Choice

Use the table for the question(s) below.
Consider the following expected returns,volatilities,and correlations:
-The volatility of a portfolio that consists of a long position of $10,000 in Wal-Mart and a short position of $2000 in Microsoft is closest to:

• A)9%.
• B)14%.
• C)11%.
• D)12%.

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Definitions:

Factor Analysis Validity

A statistical method used to examine whether a set of survey or test items correlates with underlying constructs, thereby validating the measure's theoretical assumptions.

Criterion-related Validity

The degree to which a test's outcomes correlate with other measures that assess similar constructs, determining how well one measure predicts an outcome based on another measure.

False Negative

A test result that incorrectly indicates the absence of a condition or attribute when it is actually present.

False Positive

An error in data reporting where a test incorrectly indicates the presence of a condition, phenomenon, or attribute when it is not actually present.