Q: Random variables, which are usually generated from experiments in which the observations or things…
A: A variable is basically regarded as the symbol for the working at the time, when the placeholder…
Q: Standard deviation can be viewed as a measure of systematic and unsystematic risk combined True…
A: Standard deviation is the total risk of an asset or portfolio.
Q: If two returns are positively related to each other, they will have a ________, and if they are…
A: Covariance: calculates the directional relationship between two variables.
Q: In a research, what is the difference between an experimental method and a correlational method?
A: Correlational research is a non-experimental research method which studies the relationship between…
Q: “High correlation between two variables means that one is the cause and the other is the effect.” Do…
A: Correlation:Correlation is a way to ascertain the basic equation or bond between two given…
Q: The efficient frontier measures risk by using: Group of answer choices B. Correlation A. Risk-free…
A: Efficient frontier refers to the graphical representation of the set of optimal portfolios…
Q: a firm uses ther roviding for the e ayout ratio will b True False
A: The right answer is true
Q: Which of the following statements are true? A. The lower the M-squared the better. B. The higher…
A: higher the sharpe ratio , the better the portfolio is. higher the treynor ratio, the better the…
Q: The value of a correlation is reported to be r = 0.25. How is this interpreted?
A: Correlation: In the financial and investing sectors, correlation is a statistic that indicates the…
Q: Consider the following data for a dependent variable y and two independent variables, x1 and x2. 30…
A: Regression analysis is the relationship between independent and dependent variables. Regression…
Q: Which one of the following statements regarding the coefficient of determination is NOT correct?
A: Coefficient of correlation is the measure which is used by the management of the company so that it…
Q: A variable which can assume any value within a given range is a. Discrete variable O b. Quantitative…
A:
Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:
A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…
Q: “Multicollinearity exists when the dependent variable and the independent variable are highly…
A: Multicollinearity: Multicollinearity refers to a condition where two or more explanatory variables…
Q: When completing a differential analysis, when are the differences shown as positive amounts? As…
A: In differential analysis , two alternatives are compared by taking first alternative as base and…
Q: Beta and standard deviation differ as risk measures in that beta measures:a. Only unsystematic risk,…
A: Beta and SD (standard deviation), both are the indicator of the risks but the only difference is…
Q: What is the difference between arithmetic and geometric mean returns?
A: The difference between arithmetic mean return and geometric mean return is mainly in two aspects…
Q: Is a negative Sharpe ratio good or bad? EXPLAIN
A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…
Q: What is the difference between YTD and YoY return? Provide an example
A: In the question they have asked regarding YTD and YOY differences between them so they will be…
Q: Which of the following is not a characteristic of the standard normal distribution? It's neither…
A: Standard deviation is the variation that exists from the average mean. It is calculated by taking…
Q: Explain Key Statistical Relationships between Covariance and Correlation of Returns?
A: Covariance:It is defined as the statistical relationship between stock prices of stock that vary…
Q: Use the following information to answer the question. Based on above data, determine the…
A: Given information : Outcome Probability Return Recession 20% -20% Expansion 25% 15% Boom…
Q: What is the difference between positive and negative predictive value?
A: Positive predictive value is the probability that subjects with a positive screening test truly have…
Q: What is the meaning of “statistically significant” in relation to the null hypothesis?
A: Null hyptohesis is the assumption of no effect or no relationship between variables. The Null…
Q: Which of the following statement is true of a covariance matrix? a. The diagonal values are…
A: A covariance matrix is a representation of variances and covariances between assets. Hence, a n × n…
Q: If you are checking the math, what assertion you are testing a. Completeness b. Existence C. Cut…
A: Assertions are declarations made by the management that the financial statements are accurate. These…
Q: the returns from two assets have a correlation of 0: Select one: A. Their returns are perfectly…
A: Coefficient of correlation show that how returns are related to each other.
Q: The following is a set of data from a sample of n = 11 items. Complete parts (a) through (c). 1 14…
A: a. X Y 14 28 13 26 4 8 15 30 3 6 2 4 16 32 12 24 10 20 19 38 1 2…
Q: By choosing assets that do not exhibit a high positive covariance with each other, the systematic…
A: Systematic risk is the risk associated with the market and is inherited to all securities in the…
Q: Answer the following questions : A. Which alternative is the best? B. Calculate the point of…
A: A firm finances its business operations through different sources of capital such as ordinary…
Q: What do you mean by null hypothesis, how to test the hypothesis give the best examples?
A: In common parlance, hypothesis is an assumption regarding anything and that assumption is based on…
Q: The coefficient of variation is useful in determing the relative degree of variability of different…
A: In finance, the coefficient of variation is a statistical measure that is used for determining the…
Q: When NCREIF returns and REIT returns are compared, NCREIF returns exhibit a much lower pattern of…
A: Introduction: NCREIF is nothing but an acronym for National Council of Real Estate investment…
Q: The factor (F/A,i,n) is approximately equal to the factor (P/A,I,n) Select one: True False
A: a. The factor (F/A, i,n) is the compound amount factor that is used to calculate the future value of…
Q: 3. The observation of some activity or the act of taking some measurement is called a. an…
A: An outcome means the result of an activity. An experiment means doing some thing and observing the…
Q: What are the two major types of tests that have been performed totest the validity of the CAPM?…
A: Two major types of tests performed for the validity of CAPM : 1. Black, Jensen and scholes test,…
Q: In any statistical experiment if the occurrence of one event precludes the occurrence of the other…
A: There are various events in statistical experiment
Q: The audit risk model consists of: AR = IR x CR x DR. The detection risk is the dependent variable.…
A: Level of Detection Risk is dependent on levels of Inherent Risk and level of Control Risk. There is…
Q: Fill in the blanks. a. In multiple linear regression analysis, the independent variables are called…
A: Fill in the blanks: Predictor variable: Predictor variable in a regression in the independent…
When two variables are not perfectly related, then their correlation would be one?
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- Which of the following statement is true of a covariance matrix? a. The diagonal values are volatilities b. The non-diagonal values are covariances c. The non-diagonal values are coefficients of variations d. none of the aboveConsider two random variables X and Y. The covariance between these two variables is 1.00. We can conclude that there is a perfect positive linear relationship between the two variables. Is this statement true or false? If your answer is false, give reasons.For variables X and Y, the value of the coefficient of correlation is found to be -0.95. There is a.) A strong negative linear relationship between the two variables b.) A weak negative linear relationship between the two variables c.) No relationship between the two variables d.) No choice is correct
- The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b. Between 0 and +2, inclusive c. Between 0 and +1, inclusive d. Between minus infinity and plus infinityCh. 11. If two returns are positively related to each other, they will have a ________, and if they are negatively related to each other, the ______________. Group of answer choices positive covariance, covariance will be negative negative covariance, covariance will be zero positive covariance, standard deviation will be negative negative covariance, covariance will be positive“Multicollinearity exists when the dependent variable and the independent variable are highly correlated.” Do you agree? Explain.
- The value of a correlation is reported to be r = 0.25. How is this interpreted?Tendency of moving together of two variables is classified as A. correlation B. move tendency C. variables tendency D. double tendencyIn a regression analysis, the variable that is being predicted is the a. Intervening variable O b. Dependent variable С. None O d. Independent variable
- What is the difference between covariance and correlation?Multivariate regression has multiple dependent variables. True False(a) Compare and contrast nominal, dichotomous, ordinal, and normal variables. (b) In social science research, why isn’t it important to distinguish between interval and ratio variables?