Tamara Hill, Fund Manager of the Hill Value Fund, Manages $\alpha$

question 2

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, the critical F value is _______.

• A)3.68
• B)3.58
• C)4.15
• D)3.29
• E)4.89

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Definitions:

Economic System

The structure and methods a society uses to produce, distribute, and consume goods and services.

Adultery

Engaging in sexual relations with someone other than one's spouse, considered a breach of marital fidelity.

Adultery

Voluntary sexual relations between an individual who is married and someone who is not their spouse, often considered a breach of trust in a marriage.

Teenage Sex

Sexual activities involving teenagers, which can encompass a range of behaviors from exploration to consensual intercourse, often discussed in the context of education and health.