TABLE 13-7 An Investment Specialist Claims That If One Holds a Portfolio

Multiple Choice

TABLE 13-7
An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the S&P 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.

-Referring to Table 13-7, which of the following will be a correct conclusion?

A) We cannot reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prisons stock portfolio and S&P 500 index are negatively related.
B) We can reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prisons stock portfolio and S&P 500 index are negatively related.
C) We cannot reject the null hypothesis and, therefore, conclude that there is not sufficient evidence to show that the prisons stock portfolio and S&P 500 index are negatively related.
D) We can reject the null hypothesis and conclude that there is not sufficient evidence to show that the prisons stock portfolio and S&P 500 index are negatively related.