Exhibit 12-1 When Individuals in a Sample of 150 Were Asked Whether

question 6

Multiple Choice

Exhibit 12-1
When individuals in a sample of 150 were asked whether or not they supported capital punishment, the following information was obtained. We are interested in determining whether or not the opinions of the individuals (as to Yes, No, and No Opinion) are uniformly distributed.
-Refer to Exhibit 12-1. The conclusion of the test is that the

• A)distribution is uniform
• B)distribution is not uniform
• C)test is inconclusive
• D)None of these alternatives is correct.

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Definitions:

Specific Risk

Specific risk is a type of risk that affects a very small number of assets, also known as unsystematic risk, and is associated with factors unique to a particular company or industry.

Beta

A metric that measures the volatility of an investment relative to the overall market, indicating its level of risk.

Reinvestment Risk

The risk that future cash flows from an investment will not be reinvested at the same rate as the initial investment, affecting the overall return.

Perfectly Negatively Correlated

A statistical measure indicating that two variables move in opposite directions to one another completely and consistently.