Instruction 12 -Referring to Instruction 12

question 170

Multiple Choice

Instruction 12.31
An investment specialist claims that if one holds a portfolio that moves in opposite direction to the market index like the All Ordinaries Index, then it is possible to reduce the variability of the portfolio's return. In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of the All Ordinaries index and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the All Ordinaries index, is collected. A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of All Ordinaries index (X) to prove that the prison stocks portfolio is negatively related to the All Ordinaries index at a 5% level of significance. The results are given in the following Microsoft Excel output.
$$\begin{array} { | l | l | l | l | l | } \hline & \text { Coefflelents } & \text { Standard Error } & \text { tStat } & p \text {-vahse } \\\hline \text { Intercept } & 4.866004258 & 0.35743609 & 13.61363441 & 8.7932 \mathrm { E } - 13 \\\hline \text { S\&P } & - 0.502513506 & 0.071597152 & - 7.01862425 & 2.94942 \mathrm { E } - 07 \\\hline\end{array}$$
-Referring to Instruction 12.31,which of the following will be a correct conclusion?

• A) You cannot reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prisons stock portfolio and All Ordinaries index are negatively related.
• B) You can reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prisons stock portfolio and All Ordinaries index are negatively related.
• C) You can reject the null hypothesis and conclude that there is not sufficient evidence to show that the prisons stock portfolio and All Ordinaries index are negatively related.
• D) You cannot reject the null hypothesis and, therefore, conclude that there is not sufficient evidence to show that the prisons stock portfolio and All Ordinaries index are negatively related.

Identify the steps involved in the problem-solving process and recognize their flexibility.

Acknowledge the significance of self-awareness and reflection in personal and professional growth.

Comprehend the impact of mindset and preconceived perceptions on personal development and problem-solving.

Appreciate the effectiveness of various problem-solving strategies, including brainstorming and questioning techniques.

---

Definitions:

Amoral

Lacking a moral sense; unconcerned with the rightness or wrongness of something.

Autonomous

Having the freedom to act independently, making decisions and actions based on one's own authority and principles.

Rational Human Agents

Individuals who are believed to make decisions based on logic, reason, and their own best interests.

Categorical Imperative

A central concept in the moral philosophy of Immanuel Kant, stating that one should act only according to that maxim by which you can also will that it would become a universal law.