SHY (NYSEARCA: SHY)is a 1−3 Year Treasury Bond Fund That

question 16

Multiple Choice

SHY (NYSEARCA: SHY) is a 1−3 year Treasury bond fund that is considered to be a market-neutral position.Using the S&P 500 as a benchmark and five years of monthly log-return data,the rank correlation coefficient of SHY with the S&P 500 is found to be r_s = -0.284.To determine if the SHY is not a market-neutral position,the competing hypothesis are __________.

• A) H₀: ρ_s = 0;H_A: ρ_s ≠ 0
• B) H₀: ρ_s ≤ 0;H_A: ρ_s > 0
• C) H₀: ρ_s ≥ 0;H_A: ρ_s < 0
• D) H₀: ρ_s ≠ 0;H_A: ρ_s = 0

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Definitions:

Depression

A common and serious mood disorder that negatively affects how a person feels, thinks, and handles daily activities.

Psychodynamic Theory

A theory of psychology that emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Regression

An ego defense mechanism in which a person returns to a more primitive mode of interacting with the world.

Oral Stage

The earliest developmental stage in Freud’s conceptualization of psychosexual development, during which the infant’s main gratification comes from feeding and from the body parts involved in feeding.