Suppose a t-test for the hypothesis that H(O): u = 0 vs. H(A): u<> 0 is carried out and we find t(obs.) =
1 .8. The descriptive significance level of the test is:

• A.the Type II error probability of the test.
• B.the Type I error probability of the test.
• C.the probability of getting a t-value >= 1.8 or = -1.8.

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Assume the following information about an equally-weighted index comprised of 3 stocks, A, B and C
Security | Price (Beginning) | Price (End) | Total Dividends A | 5 | 6 | 1 B | 8| 7 | 0 C | 10 | 15 | 2
The price return of the index is:

• A.19.2%.
• B.18.8%.
• C.32.5%.

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If a firm's ratio of "current assets to current liabilities" is lower than the industry average and its ratio of "long-term debt to shareholder's equity" is lower than the industry average, it would most likely indicate that the firm:

• A.has more current liabilities than the industry average.
• B.has more leased assets than the industry average.
• C.will be less profitable than the industry average.

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If you can invest for 2 years at 5% today, or invest for 1.5 years at 4.6%, what would you have to earn on your reinvestment to be just as well off?

• A.3.102%
• B.5.40%
• C.6.204%

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An increase in real output will cause which of the following?

• A.an increase in interest rates and an increase in bond prices
• B.an increase in interest rates and a fall in bond prices
• C.a decrease in interest rates and an increase in bond prices

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