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A Fund Manager Wants to Know If the Annual Rate

question 83

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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. 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.   The p-value for the test is ________. A)  greater than 0.10 B)  between 0.10 and 0.05 C)  between 0.05 and 0.01 D)  less than 0.01 The p-value for the test is ________.


Definitions:

Discounted Value

The present value of future cash flows discounted back to the present using a specific rate.

Future Earnings

Future earnings denote the projected income a company or individual is expected to generate over a specified future period.

Mutual Fund Products

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Under-Served Niche

A segment of the market that has not been adequately addressed or serviced by existing providers, often presenting opportunities for new entrants.

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