Which of the Following Is TRUE of the Capability Index

question 62

Multiple Choice

Which of the following is TRUE of the capability index C_pk?

• A)It is very robust to departures from Normality.
• B)It is not affected by how we estimate the process standard deviation.
• C)It is subject to virtually no sampling variability.
• D)None of the above

---

Definitions:

Cumulative Abnormal Returns

The aggregate difference in an asset’s observed versus expected returns over a specific timeframe, often used to assess impact of an event.

Takeover Announcement

A public declaration that a company intends to acquire another company, often triggering changes in the stock prices of both companies involved.

Strong-form Efficient

A theory suggesting that all information, public and private, is fully reflected in stock prices, and that it is impossible to consistently achieve higher returns.

Semistrong-form Efficient

Refers to a market efficiency form where prices include all publicly available information, including both historical and newly released financial data.