Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 48

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. Using the p-value approach and α = 0.10, the appropriate conclusion is ________.

• A) to reject the null hypothesis; we can conclude the median difference of the returns is greater than zero
• B) to reject the null hypothesis; we cannot conclude the median difference of the returns is greater than zero
• C) do not reject the null hypothesis; we cannot conclude the median difference of the returns is greater than zero
• D) do not reject the null hypothesis; we can conclude the median difference of the returns is greater than zero

---

Definitions:

Peacemaking

Efforts aimed at establishing peace in conflicts or disputes, focusing on reconciliation, understanding, and conflict resolution.

Virtue

Virtue refers to the quality of moral excellence, righteousness, and ethical goodness, often seen as a disposition to act in ways that are beneficial to oneself and others.

Ethical Life

Living a life grounded in moral principles and values, characterized by actions that consistently reflect ethical convictions.