If _j, an Unbiased Estimator of _j, Is

question 4

Multiple Choice

If _j, an unbiased estimator of _j, is also a consistent estimator of _j, then when the sample size tends to infinity:

• A)the distribution of _j collapses to a single value of zero.
• B)the distribution of _j diverges away from a single value of zero.
• C) the distribution of _j collapses to the single point _j.
• D) the distribution of _j diverges away from _j.

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Definitions:

Bond Yield

The return an investor realizes on a bond, calculated by dividing the annual interest payments by the current market price of the bond.

Equally Weighted Index

An equally weighted index is a stock market index in which each constituent stock contributes equally to the index's value, regardless of the company's market capitalization.

Value-Weighted Index

A stock market index in which each component is weighted in proportion to its market value.

Price-Weighted Index

A stock market index in which each company's influence on the index's movement is proportional to its stock price.