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

question 6

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 null 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

---

Definitions:

Table Design View

A database view that allows for the detailed definition and modification of a table's structure, including fields, types, and properties.

Field Properties Pane

A user interface section in database and form design tools that allows users to set and modify the attributes or properties of a database field.

Required Property

A setting in programming and database fields that indicates a field must have a value before a record can be saved or a form submitted.

Field

A component of a database table that holds individual pieces of data, serving as the smallest unit of data storage, like an email address or ID number, in a structured format.