During a 10-year period, the standard deviation of annual returns on a portfolio you are analyzing was 15 percent a year. You want to see whether this record is sufficient evidence to support the conclusion that the portfolio's underlying variance of retum was less than 400, the return variance of the portfolio's benchmark. Formulate in your mind a null and alternative hypotheses consistent with the verbal description of your objective. Identify in your mind the test statistic for conducting a test of the hypotheses. Identify and supply the rejection point at the 0.10 (not 0.05) significance level for the hypothesis. You may use excel for an exact value, or a table for an approximate value. Both will be accepted.
During a 10-year period, the standard deviation of annual returns on a portfolio you are analyzing was 15 percent a year. You want to see whether this record is sufficient evidence to support the conclusion that the portfolio's underlying variance of retum was less than 400, the return variance of the portfolio's benchmark. Formulate in your mind a null and alternative hypotheses consistent with the verbal description of your objective. Identify in your mind the test statistic for conducting a test of the hypotheses. Identify and supply the rejection point at the 0.10 (not 0.05) significance level for the hypothesis. You may use excel for an exact value, or a table for an approximate value. Both will be accepted.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 23PFA
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