Tamara Hill,fund Manager of the Hill Value Fund,manages a Portfolio $\alpha$

question 60

Multiple Choice

Tamara Hill,fund manager of the Hill Value Fund,manages a portfolio of 250 common stocks. Tamara is searching for a 'low risk' issue to add to the portfolio,i.e.,one with a price variance less than that of the S&P 500 index. Moreover,she assumes an issue is not 'low risk' until demonstrated otherwise. Her staff reported that during the last nine quarters the price variance for the S&P 500 index (population 1) was 25,and for the last seven quarters the price variance for XYC common (population 2) was 8. Assume that stock prices are normally distributed in the population. Using $\alpha$ = 0.05,Tamara's alternate hypothesis is _______.

• A) \(\sigma\)₁² = \(\sigma\)₂²
• B) \(\sigma\)₁² \(\neq\) \(\sigma\)₂²
• C) \(\sigma\)₁² > \(\sigma\)₂²
• D) \(\sigma\)₁² < \(\sigma\)₂²
• E) s₁²< s₂²

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Definitions:

Non-Volatile

Referring to memory storage that retains data even when the power is turned off, ensuring data preservation.

Flash Memory

A type of non-volatile storage that can be electronically erased and reprogrammed, commonly used in USB drives, memory cards, and solid-state drives.

Storage Options

Varieties of data storage solutions such as hard drives, solid-state drives, cloud storage, and external storage devices, each offering different capacities, speeds, and access methods.

Loses Power

Refers to a situation where a device or system experiences a reduction or complete loss of electrical energy.