When Looking at Investment Portfolios Historically, Was There a Pattern

question 63

Essay

When looking at investment portfolios historically, was there a pattern between returns and volatility?

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Definitions:

Chi-squared Distribution

A statistical distribution that is used to describe the distribution of the sum of the squares of independent, standard normal variables.

Critical Value

The threshold value that a test statistic must exceed for the null hypothesis to be rejected in hypothesis testing.

Degrees Of Freedom

The number of independent values in a statistical calculation that are free to vary when estimating parameters.

Area

A measure of the extent of a surface or a piece of land, often measured in square units.