Tamara Hill, Fund Manager of the Hill Value Fund, Manages $\alpha$

question 2

Multiple Choice

Tamara Hill, fund manager of the Hill Value Fund, manages a portfolio of 250 common stocks.Tamara is searching for a 'low risk' issue to add to the portfolio, i.e., one with a price variance less than that of the S&P 500 index.Moreover, she assumes an issue is not 'low risk' until demonstrated otherwise.Her staff reported that during the last nine quarters, the price variance for the S&P 500 index (population 1) was 25, and for the last seven quarters, the price variance for XYC common (population 2) was 8.Assume that stock prices are normally distributed in the population.Using $\alpha$ = 0.05, the critical F value is _______.

• A)3.68
• B)3.58
• C)4.15
• D)3.29
• E)4.89

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Definitions:

Parallel Form Reliability

A measure of reliability used to assess the consistency of the results of different forms of the same test.

Content Validity

Content Validity assesses whether a test or measurement tool accurately covers the content it is intended to measure, ensuring that all aspects of the construct are evaluated.

Construct Validity

The degree to which a test or tool measures the theoretical construct or trait it is intended to measure, reflecting its accuracy and appropriateness of inferences drawn from test scores.

Discriminant Validity

A property demonstrating that a test or scale that is not closely related to variables from which it is theoretically distinct.