Consider the Expected Returns (In Percent) from Two Investment Options

question 94

Multiple Choice

Consider the expected returns (in percent) from two investment options. Beth wants to determine if investment 1 has a lower variance. Use the following summary statistics. Which of the following are the competing hypotheses for this test?

• A) Η₀: / ≤ 1, Η_A: / > 1
• B) Η₀: / ≤ 1, Η_A: / > 1
• C) Η₀: / = 1, Η_A: / ≠ 1
• D) Η₀: / ≥ 1, Η_A: / < 1

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