Exhibit 20

question 54

Multiple Choice

Exhibit 20.6.A fund manager wants to know if the annual rate of return is greater for growth stocks (1) than value stocks (2) .The fund manager collects data on the returns of growth and value funds.Below are the sample sizes and rank sums for the Wilcoxon rank-sum test. Refer to Exhibit 20.6.Using the critical value approach,the appropriate conclusion is:

• A)Reject the null hypothesis,conclude the median return of growth stock is greater than the median return of value stocks
• B)Reject the null hypothesis,conclude the median return of value stock is greater than the median return of growth stocks
• C)Reject the null hypothesis,conclude the median return of growth stock differs from the median return of value stocks
• D)Reject the null hypothesis,cannot conclude the median return of growth stocks is greater than the median return of value stocks

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Definitions:

APB No.25

An accounting principle that dealt with stock-based compensation and required companies to record an expense for issued options.

Vesting Period

The period of time an employee must work before gaining full access to their benefits or compensation plans, such as pension plans or stock options.

Stock Options

Financial instruments that give employees the right to buy or sell shares of their company at a predetermined price.

Grant Period

The time frame during which certain rights, such as stock options, are awarded to employees and can be exercised.