Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 21

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 is 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. At the 10% significance level, the critical value is ________.

• A) 1.645
• B) 1.96
• C) 2.33
• D) 2.575

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Definitions:

Major Organs

The essential organs in a body that perform vital functions necessary for survival, such as the heart, lungs, and liver.

Organism

A living entity that can act, react, and engage with its environment, displaying signs of life.

Monozygotic Twins

Twins that originate from a single fertilized egg, splitting and developing into two individuals with identical genetic information.

Genetically Identical

Having exactly the same DNA sequence in every genetic locus, as seen in identical twins or clones.