Asked by
Daniel Bogale
on Nov 04, 2024
Verified
To determine whether portfolio performance is statistically significant requires
A) a very long observation period due to the high variance of stock returns.
B) a short observation period due to the high variance of stock returns.
C) a very long observation period due to the low variance of stock returns.
D) a short observation period due to the low variance of stock returns.
E) a low variance of returns over any observation period.
Statistically Significant
Refers to a result that is not likely to occur randomly or by chance, but rather is likely to be attributable to a specific cause.
Portfolio Performance
The analysis and evaluation of the returns generated by a collection of investments held by an individual or an institution.
Observation Period
A specific timeframe during which data is collected or observations are made.
- Analyze the statistical significance of portfolio performance.
Verified Answer
LL
Learning Objectives
- Analyze the statistical significance of portfolio performance.