A Fund Manager Wants to Know If the Annual Rate

question 9

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. Using the critical value approach and α = 0.01, the appropriate conclusion is ________.

• A) reject the null hypothesis; we can conclude the median return of growth stocks is greater than the median return of value stocks
• B) do not reject the null hypothesis; we cannot conclude the median return of growth stocks is greater than the median return of value stocks
• C) do not reject the null hypothesis; we can conclude the median return of growth stocks is greater than the median return of value stocks
• D) reject the null hypothesis; we cannot conclude the median return of growth stocks is greater than the median return of value stocks

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Definitions:

Bonds Outstanding

The total amount of bonds that have been issued by a corporation or government entity that remain unpaid.

Retirement Entry

An accounting entry that records the removal of fixed assets or inventory from the company's records upon their disposal or sale.

Discount On Bonds Payable

The difference between the face value of a bond and its selling price when a bond is sold for less than its face value.