Concept explainers
Case Study 7.5.2 compared the volatility of Global Rock Funds’ return on investments to that of the bench-mark Lipper fund. But can it be said that the returns them-selves beat the benchmark? The table below gives the annual returns of the GlobalRock Fund for the years 1989 to 2007 and the corresponding Lipper averages. Test the hypothesis that
Investment Return %Investment Return % | |||||
Year | Global Rock, x | Lipper Avg., y | Year | Global Rock, x | Lipper Avg., y |
1989 | 15.32 | 14.76 | 1999 | 27.43 | 34.44 |
1990 | 1.62 | -1.91 | 2000 | 8.57 | 1.13 |
1991 | 28.43 | 20.67 | 2001 | 1.88 | -3.24 |
1992 | 11.91 | 6.18 | 2002 | -7.96 | -8.11 |
1993 | 20.71 | 22.97 | 2003 | 35.98 | 32.57 |
1994 | -2.15 | -2.44 | 2004 | 14.27 | 15.37 |
1995 | 23.29 | 20.26 | 2005 | 10.33 | 11.25 |
1996 | 15.96 | 14.79 | 2006 | 15.94 | 12.70 |
1997 | 11.12 | 14.27 | 2007 | 16.71 | 9.65 |
1998 | 0.37 | 6.25 |
Note that
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
An Introduction to Mathematical Statistics and Its Applications (6th Edition)
- Calculus For The Life SciencesCalculusISBN:9780321964038Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.Publisher:Pearson Addison Wesley,Linear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage LearningGlencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
- Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage LearningFunctions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning