How Is the Consistency of Estimators Defined

question 63

Multiple Choice

How is the consistency of estimators defined?

• A)An estimator is consistent if its expected value equals the estimated population parameter.
• B)A consistent estimator approaches the estimated population parameter as the sample size grows larger.
• C)An estimator is consistent if it always gives the correct value of the estimated population parameter.
• D)An unbiased estimator is consistent if its standard error is lower than that of other estimators of the estimated population parameter.

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Definitions:

Non-U.S. Stocks

Shares of companies that are based outside of the United States, often included in investment portfolios for geographical diversification.

S&P 500

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Local Currency Returns

The return on an investment denominated in the currency of the country where the security is issued, ignoring the effects of foreign exchange fluctuations.

Correlation

A statistical measure showing how two securities move in relation to each other.