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SCENARIO 13-7 an Investment Specialist Claims That If One Holds

Question 112

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SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D) 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D) ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D) x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D) X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D)
-Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D) iate null and alternative hypotheses are, respectively,


A) SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D)
B) SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D)
C) SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D)
D) SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output. -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 index, the appropr iate null and alternative hypotheses are, respectively, A) B) C) D)

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