CAIA Q1 Terms correctly defined

Absolute Returns - Answer An absolute return standard means that returns are evaluated relative to the riskless rate, or zero, and therefore independently of performance in equity markets, debt markets, or any other markets. Jarque-Bera test - Answer involves a statistic that is a function of the skewness and excess kurtosis of the sample: JB = (n∕6)[S2 + (K2 ∕4)] where JB is the Jarque-Bera test statistic, n is the number of observations, S is the skewness of the sample, and K is the excess kurtosis of the sample. TEST STATISTIC CRITICAL VALUE = REJECT NULL Distribution Value to Pay-in-ratio - Answer Does not depend on changes in NAV Treynor Ratio - Answer (Expctd rtrn - RF)/ Beta Ex Post Alpha - Answer Return attribution analysis best tool Beta Expansion - Answer observed during down market cycles and primarily higher correlation between HF & systematic returns P-Value - Answer Accept null if greater than significance level Data dredging - Answer overusing statistical rests to identify significant relationships with little regard for underlying economic rationale