Exhibit 20

question 24

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 p-value approach and ,the appropriate conclusion is:

• A)Reject the null hypothesis,conclude the median return of value stock is greater than the median return of growth stocks
• B)Reject the null hypothesis,conclude the median return of growth stock differs from the median return of value stocks
• C)Reject the null hypothesis,conclude the median return of growth stock is greater than 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

Comprehend the impact of competitive advantage on firm performance, including cost reduction and increased pricing power.

Gain insights into the Industrial Organization (IO) perspective on industry structure, performance, and competitive advantage.

Understand the limitations of competitive models and strategies in providing sustainable competitive advantage.

Understand the limitations and potential pitfalls of adopting best practices as a pathway to success.

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Definitions:

Conventional CAPM

The Capital Asset Pricing Model, a financial model that describes the relationship between systematic risk and expected return for assets, typically used for pricing risky securities.

Human Capital

The economic value of an individual's skill set and knowledge, which can contribute to their productivity and earnings.

Conditional CAPM

An extension of the Capital Asset Pricing Model that accounts for varying conditions over time or different market environments.

Empirical Returns

Returns that are calculated based on historical data, reflecting the actual gains or losses realized over a specific period.