Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 92

Multiple Choice

Investment institutions usually have funds with different risk versus reward prospectuses.A trading magazine wants to determine if the returns of high-risk funds are 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 T = T⁺ = 185.Inasmuch as the sample size is greater than 10,T can be assumed to follow the normal distribution with mean and standard deviation _________________,respectively.

• A) 126.5 and 30.80
• B) 30.80 and 126.5
• C) 125.5 and 948.75
• D) 30.80 and 984.75

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Definitions:

Customer Restrictions

Limitations or specific conditions imposed on the purchasing, use, or selection process by customers, often by companies or regulatory bodies.

Interstate Commerce Clause

A provision in the U.S. Constitution that gives Congress the power to regulate commerce between states.

Sherman Act

An important United States antitrust law enacted in 1890 to prohibit monopolies and practices that restrain trade or commerce among states.

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