True or False A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found a mean of 18.17 and standard deviation of 4.60 . Assume that the population
is normally distributed and test at the 0.01 level of significance. The decision rule is: Reject H0 if the calculated z > 2.33.
Indicate whether the statement is true or false
F
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Compounding is the conversion of future cash flow amounts to their present value
Indicate whether the statement is true or false
Which of the following is a requirement of the Sarbanes-Oxley Act?
A) An outside auditor must evaluate the clients internal controls and report on the internal controls as part of the audit report. B) The Public Company Accounting Oversight Board must conduct audits of public companies. C) The accounting firm that audits a public client must also provide consulting services for the same client. D) The Public Company Accounting Oversight Board must create new accounting standards.
Companies listed on the stock exchanges must file financial statements with the
A) Financial Accounting Standards Board. B) American Institute of Certified Public Accountants. C) Securities and Exchange Commission. D) Internal Revenue Service.
As an alternative to demutualizing, Big Mutual Insurance Company reorganized itself into a corporate form that can directly or indirectly own a stock insurance company. This form of organization is called a(n)
A) holding company. B) shell company. C) upstream company. D) downstream company.