Investment Institutions Usually Have Funds with Different Risk Versus Reward

question 101

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.Assuming that T follows a normal distribution,the value of the test statistic is _____.

• A) 0.062
• B) 1.899
• C) 185
• D) 1.899ز

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Definitions:

Capitalizing

The accounting practice of recognizing a cost as a long-term asset rather than an expense.

Amortizing

The process of gradually paying off a debt over a predetermined period of time through regular payments.

Unrestricted Contribution

Donations or funds given to an organization without any conditions or limitations on their use.

Unrestricted Resources

Funds or resources received by an organization that are not subject to stipulations on their use by donors, allowing for flexibility in allocation.