Which of the Following Is Not a Guideline for Presenting

question 190

Multiple Choice

Which of the following is not a guideline for presenting good graphs?

• A) Graphs should be properly scaled along each axis.
• B) Any chartjunk used in a graph should be labelled.
• C) The scale on the vertical axis should begin at zero.
• D) All axes on a graph should be properly labelled.

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Definitions:

Risk Premium

The additional return over the risk-free rate that investors require as compensation for investing in risky assets.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, expressed as a percentage of the mean, often used to assess the risk of an investment relative to its expected return.

Historical Excess Returns

The returns on an investment or portfolio in excess of a benchmark or risk-free rate, assessed over a specific historical period.

Geometric Mean Return

The average rate of return on an investment that takes into account the effects of compounding.