A Financial Analyst Maintains That the Risk,measured by the Variance,of

question 93

Multiple Choice

A financial analyst maintains that the risk,measured by the variance,of investing in emerging markets is more than 280(%) ².Data on 20 stocks from emerging markets revealed the following sample results: = 12.1% and s² = 361(%) ² .Assume that the returns are normally distributed.Which of the following is the correct value of the test statistic?

• A) = 36.19
• B) = 24.50
• C) = 24.50

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Definitions:

Direct Observation

A research method where data is collected by watching subjects in their natural environment without interaction.

Asynchronous

Occurring at different times or uncoordinated—for example, members of a social media site contributing individually to it, in their own time. See also synchronous.

Online Focus Group

A moderated discussion that takes place on the internet, where participants can share their thoughts and opinions on a given topic.

Demographically Dissimilar

Referring to populations that differ significantly in demographic characteristics such as age, gender, ethnicity, or socioeconomic status.