A Financial Analyst Examines the Performance of Two Mutual Funds

question 60

Multiple Choice

A financial analyst examines the performance of two mutual funds and claims that the variances of the annual returns for the bond funds differ.To support his claim,he collects data on the annual returns (in percent) for the years 2001 through 2010.The analyst assumes that the annual returns for the two emerging market bond funds are normally distributed.Use the following summary statistics. The competing hypotheses are At α = 0.10,is the analyst's claim supported by the data using the critical value approach?

• A) No,because the value of the test statistic is less than the critical F value.
• B) Yes,because the value of the test statistic is less than the critical F value.
• C) Yes,because the value of the test statistic is greater than the critical F value.
• D) No,because the value of the test statistic is greater than the critical F value.

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Definitions:

DDT

A synthetic organic compound used as an insecticide, known for its environmental impacts, including the accumulation in the food chain.

Pyrethrum

A natural insecticide made from the dried flower heads of certain chrysanthemum species.

Chrysanthemums

A type of flowering plant, often grown for its brightly colored flowers and used in floral arrangements and festivals.

Carbamates

A class of chemical compounds used as insecticides, herbicides, and in some medications, known for their ability to inhibit cholinesterase enzymes.