module 6-11

Question 1

Security Market Line (SML)

Answer 1

The SML shows the relationship between risk measured by beta and expected return for any asset

Question 2

Capital Market Line (CML)

Answer 2

The Capital Market Line (CML) gives risk/return

relation for optimal portfolios

Question 3

INDEX

Answer 3

– returns a value or reference of the cell at the intersection of a particular row and column in a given range

Question 4

MATCH

Answer 4

– an array that matches a specified value in a specified order

Question 5

GEOMEAN

Answer 5

– returns the geometric mean of an array or range of positive numeric data, represents the actual wealth being added or eroded from an investment over time

Question 6

STDEV

Answer 6

– standard deviation, the relationship that a set of data has to the mean of the data.

Question 7

STDEVP

Answer 7

– the standard deviation of the population (parameters) as opposed to standard deviation of a sample (statistics).

Question 8

FREQUENCY

Answer 8

– calculates how often values occur within a range of values and then returns a vertical array of numbers having one more element than bins_array

Question 9

HISTOGRAM

Answer 9

– a chart which can be plotted like any other graph once the frequency has been used to determine the number of observations in each bin

Question 10

T-TEST

Answer 10

– used to test hypotheses about means when the population variance is unknown