The overall goal of portfolio models is to create a portfolio ...

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The overall goal of portfolio models is to create a portfolio that provides the best balance between
 a. short-term and long-term investments.
  b. gains and losses.
  c. risk and return.
  d. liquidity and stability.

Question 2

A soft drink filling machine, when in perfect adjustment, fills bottles with 12 ounces of soft drink. A random sample of 25 bottles is selected, and the contents are measured. The sample yielded a mean content of 11.88 ounces, with a standard deviation of 0.24 ounce. With a .05 level of significance, test to see if the machine is in perfect adjustment. Assume the distribution of the population is normal.

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Answer to Question 1

C

Answer to Question 2

H0:  = 12
Ha:   12 t = 2.5; therefore, reject H0 . There is sufficient evidence at  = .05 to conclude that the machine is NOT in perfect adjustment.