Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 12

Multiple Choice

Investment institutions usually have funds with different risk versus reward prospectuses. A trading magazine wants to determine if the returns of high-risk funds are greater than low-risk funds. The magazine records the return of high- and low-risk funds for a sample of 22 institutions. For the Wilcoxon signed-rank test, where D = high-risk return − low-risk return, the value of the test statistic is T = T⁺ = 185. Given the sample size, the sampling distribution of T can be approximated by the normal distribution as the sample size is greater than 10; T can be assumed to follow the normal distribution with mean and standard deviation ________, respectively.

• A) 126.5 and 30.80
• B) 30.80 and 126.5
• C) 125.5 and 948.75
• D) 30.80 and 984.75

---

Definitions:

Sexism

An attitude or behavior that discriminates against one sex, usually females, based on the assumed superiority of the other sex.

Genderism

Discrimination or prejudice against individuals on the basis of their gender identity or expression.

Homophobia

A fear and hatred of homosexuality.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.