The Following Frequency Distribution Shows the Monthly Stock Returns for Home

question 108

Multiple Choice

The following frequency distribution shows the monthly stock returns for Home Depot for the years 2003 through 2007. Over time period,the following summary statistics are provided: Mean = 0.31%,Standard deviation = 6.49%,Skewness = 0.15,and Kurtosis = 0.38.At the 5% confidence level,which of the following is the correct conclusion for the Jarque-Bera test for normality?

• A) Reject the null hypothesis;conclude that monthly stock returnsare normally distributed with mean 0.31% and standard deviation 6.49%.
• B) Reject the null hypothesis;conclude that monthly stock returnsare not normally distributed with mean 0.31% and standard deviation 6.49%.
• C) Do not reject the null hypothesis;conclude that monthly stock returnsare normally distributed with mean 0.31% and standard deviation 6.49%
• D) Do not reject the null hypothesis;conclude that monthly stock returnsare not normally distributed with mean 0.31% and standard deviation 6.49%.

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Definitions:

Strategic Planning

The process of defining a company's direction and making decisions on allocating its resources to pursue this strategy.

Internal Strengths

Unique capabilities within an organization that provide it with a competitive advantage in its industry.

Good Management

The practice of effectively and efficiently leading and organizing resources, including people, to achieve the goals of an organization.

Good Organization

A well-structured entity with efficient processes, clear objectives, and effective communication among its members.