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A Financial Analyst Maintains That the Risk,measured by the Variance,of

Question 64

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A financial analyst maintains that the risk,measured by the variance,of investing in emerging markets is more than 280(%) 2.Data on 20 stocks from emerging markets revealed the following sample results: A financial analyst maintains that the risk,measured by the variance,of investing in emerging markets is more than 280(%) <sup>2</sup>.Data on 20 stocks from emerging markets revealed the following sample results:   = 12.1% and s<sup>2</sup> = 361(%) <sup>2</sup>.Assume that the returns are normally distributed.Which of the following is the correct conclusion of the financial analyst's claim? A)  Do not reject H<sub>0</sub>.The financial analyst's claim is supported by the sample data at 1% significance level. B)  Reject H<sub>0</sub>.The financial analyst's claim is not supported by the sample data at 1% significance level. C)  Do not reject H<sub>0</sub>.The financial analyst's claim is not supported by the sample data at 1% significance level. D)  Reject H<sub>0</sub>.The financial analyst's claim is supported by the sample data at 1% significance level. = 12.1% and s2 = 361(%) 2.Assume that the returns are normally distributed.Which of the following is the correct conclusion of the financial analyst's claim?


A) Do not reject H0.The financial analyst's claim is supported by the sample data at 1% significance level.
B) Reject H0.The financial analyst's claim is not supported by the sample data at 1% significance level.
C) Do not reject H0.The financial analyst's claim is not supported by the sample data at 1% significance level.
D) Reject H0.The financial analyst's claim is supported by the sample data at 1% significance level.

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