A Fund Manager Wants to Know If the Annual Rate

question 60

Multiple Choice

A fund manager wants to know if the annual rate of return is greater for growth stocks (sample 1) than for value stocks (sample 2) . The fund manager collects data on the returns of growth and value funds. Below are the sample sizes and rank sums for the Wilcoxon rank-sum test. To determine whether the median return of growth funds is larger than the median return of value funds, the competing hypotheses are ________.

• A) H₀: m₁ - m₂ ≥ 0; H_A: m₁ - m₂ < 0
• B) H₀: m₁ - m₂ ≤ 0; H_A: m₁ - m₂ > 0
• C) H₀: m₁ - m₂ ≠ 0; H_A: m₁ - m₂ = 0
• D) H₀: m₁ - m₂ = 0; H_A: m₁ - m₂ ≠ 0

---

Definitions:

Promissory Estoppel

A legal principle that enforces a promise in absence of a formal contract, provided individuals have acted in reliance on that promise.

Past Service

The period of service that is counted for the purposes of calculating pensions or other benefits, often before the current benefit plan was in place.

Consideration Requirement

In contract law, this is a necessary element that refers to something of value promised in exchange for a specific action or non-action.

Charitable Subscription

A commitment to donate a specified amount of money to a charity or non-profit organization.