In the US, the Lowest Standard Deviation on Returns Appears to Be

question 7

Multiple Choice

In the U.S., the lowest standard deviation on returns appears to be gained through a portfolio of

• A) U.S. based multinationals.
• B) all foreign multinationals.
• C) all ADR's.
• D) domestic stocks and ADR's.

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Definitions:

Sampling Distribution

The probability distribution of a statistic based on all possible random samples that can be drawn from a population.

Sample Mean

The average of a set of numerical values drawn from a larger population.

Confidence Interval

A spectrum of values obtained from sample statistics, which is probable to encompass the value of an unidentified population parameter.

Population Parameter

A numerical characteristic or feature of an entire population, such as its mean or standard deviation.