A Financial Analyst Maintains That the Risk, Measured by the Variance

question 60

Multiple Choice

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: = 12.1% and s² = 361(%) ². Assume that the returns are normally distributed. Which of the following are appropriate hypotheses to test the analyst's claim?

• A) : ≤ 280, : > 280
• B) : = 280, : ≠ 280
• C) : ≥ 280, : < 280
• D) : < 280, : ≥ 280

---

Definitions:

Globulin

A type of protein in blood plasma that plays roles in immune response, blood clotting, and transporting substances.

Plasma Protein

Proteins found in blood plasma that perform various functions, including clotting, defence against pathogens, and transport of substances.

Immunity

The body's ability to resist or fight off infection, disease, or other unwanted biological invasion.

Thrombocytopenia

Condition in which there is an abnormally small number of platelets in the blood.