SHY (NYSEARCA: SHY) Is a 1-3-Year Treasury Bond Fund That

question 50

Multiple Choice

SHY (NYSEARCA: SHY) is a 1-3-year Treasury bond fund that is considered to be a market-neutral position. Using the S&P 500 as a benchmark and five years of monthly log-return data, the rank correlation coefficient of SHY with the S&P 500 is found to be r_s = -0.284. To determine if the SHY is not a market-neutral position, the competing hypotheses are ________.

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

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Definitions:

Distal Convoluted Tubule

A portion of the kidney nephron that functions in the reabsorption of water, sodium, and chloride and in the regulation of potassium and acid-base balance.

Proximal Convoluted Tubule

A part of the nephron in the kidney where the filtration of blood takes place, responsible for the reabsorption of water, ions, and nutrients.

Secretion

The process by which substances are produced and discharged from a cell or gland.

Atrial Natriuretic Peptide

A hormone secreted by the heart's atria that regulates blood pressure by decreasing sodium ion concentration and therefore reducing blood volume.