To Determine Whether Portfolio Performance Is Statistically Significant Requires

question 67

Multiple Choice

To determine whether portfolio performance is statistically significant requires

• A) a very long observation period due to the high variance of stock returns.
• B) a short observation period due to the high variance of stock returns.
• C) a very long observation period due to the low variance of stock returns.
• D) a short observation period due to the low variance of stock returns.
• E) a low variance of returns over any observation period.

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Definitions:

Sign Stimulus

A specific external sensory cue that triggers a fixed action pattern in an animal.

Operant Conditioner

A method of learning that occurs through rewards and punishments for behavior.

Reproductive Success

The ability of an organism to produce offspring that survive and reproduce, thus passing genes to the next generation.

Viable Offspring

Offspring that are capable of survival and reproduction, contributing to the genetic continuity of a species.