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.

---

Definitions:

Alcohol

A psychoactive substance found in beverages such as beer, wine, and spirits, known for its ability to alter moods and behaviors.

Antibiotics

Medications used to treat bacterial infections, either by killing bacteria or inhibiting their growth.

Globalization

The process whereby businesses, culture, and information spread worldwide, leading to increased interconnectedness and interdependence.

Infectious Disease

A disease caused by microorganisms, such as bacteria, viruses, fungi, or parasites, that can be spread, directly or indirectly, from one person to another.