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

question 69

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.Because the sample size is greater than 10 and r_s can be assumed to follow a normal distribution,the value of the test statistic is ________.

• A) -2.20
• B) -2.18
• C) 2.18
• D) 2.20

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Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the two specified populations or sets of data.

Test Statistic

A calculated value from sample data used to make a decision about the validity of a hypothesis in statistical hypothesis testing.

P-Value

A measure in statistics that helps in determining the significance of results obtained from a hypothesis test.

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A series of advertisement messages that share a single idea and theme intended to market a product or service.