Exhibit 20

question 14

Multiple Choice

Exhibit 20.4.Investment institutions usually have funds with different risk vs.reward prospectuses.A trading magazine wants to determine if the returns of high risk funds is greater than low risk funds.The magazine records the return of high and low risk funds for a sample of 22 institutions.For the Wilcoxon signed-rank test,where D = high risk return - low risk return,the value of the test statistic is . Refer to Exhibit 20.4.Using the critical value approach,appropriate conclusion is:

• A)Reject the null hypothesis,cannot conclude the median difference of the returns is greater than zero
• B)Do no reject the null hypothesis,cannot conclude the median difference of the returns is greater than zero
• C)Reject the null hypothesis,conclude the median difference of the returns is greater than zero
• D)Do not reject the null hypothesis,conclude the median difference of the returns is greater than zero

Recognize the role of the government in regulating business practices to promote competition.

Distinguish between various types of mergers and their implications for the market and competition.

Identify and describe major antitrust cases and their outcomes.

Understand the evolution of business practices in terms of mergers, acquisitions, and antitrust regulation.

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Definitions:

Finance Companies

Businesses that offer short-term loans at substantially higher rates of interest than banks.

Stocks and Bonds

Financial instruments; stocks represent ownership shares in a company, while bonds are loan agreements between the bond issuer and an investor.