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Suppose you want to build a diversified and risk-averse portfolio. However, there is one "dark horse" stock, which probability extent is difficult to predict. Some financial experts claim that the probability of this stock going up or down should be around 0.35 and others propose that potential decrease is different from that value. Identify the potential Type Il error in this scenario. a. Falsely claiming that the stock would go down by 0.35, when, in fact, it differs from that value O b. None of the above Oc. Falsely claiming that the stock would go up by 0.35, when, in fact, it is lower than 0.35 O d. Falsely claiming that the stock would decrease by the value different than 0.35, when, in fact, it is more than 0.35

Suppose you want to build a diversified and risk-averse portfolio. However, there is one "dark horse" stock, which probability extent is difficult to predict. Some financial experts claim that the probability of this stock going up or down should be around 0.35 and others propose that potential decrease is different from that value. Identify the potential Type Il error in this scenario. a. Falsely claiming that the stock would go down by 0.35, when, in fact, it differs from that value O b. None of the above Oc. Falsely claiming that the stock would go up by 0.35, when, in fact, it is lower than 0.35 O d. Falsely claiming that the stock would decrease by the value different than 0.35, when, in fact, it is more than 0.35

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose you want to build a diversified and risk-averse portfolio. However, there is one "dark horse" stock, which probability extent is difficult to predict. Some financial experts claim that the probability of this stock going up or down should be around 0.35 and others propose that potential decrease is different from that value. Identify the potential Type Il error in this scenario. Oa. Falsely claiming that the stock would go down by 0.35, when, in fact, it differs from that value O b. None of the above Oc. Falsely claiming that the stock would go up by 0.35, when, in fact, it is lower than 0.35 O d. Falsely claiming that the stock would decrease by the value different than 0.35, when, in fact, it is more than 0.35
Transcribed Image Text:Suppose you want to build a diversified and risk-averse portfolio. However, there is one "dark horse" stock, which probability extent is difficult to predict. Some financial experts claim that the probability of this stock going up or down should be around 0.35 and others propose that potential decrease is different from that value. Identify the potential Type Il error in this scenario. Oa. Falsely claiming that the stock would go down by 0.35, when, in fact, it differs from that value O b. None of the above Oc. Falsely claiming that the stock would go up by 0.35, when, in fact, it is lower than 0.35 O d. Falsely claiming that the stock would decrease by the value different than 0.35, when, in fact, it is more than 0.35
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