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:

Priority

The status of being given more importance or attention before other things.

Default

Failure to fulfill an obligation, especially failure to meet a financial obligation or to appear in court when required.

Secured Party

An individual or entity that holds an interest, typically a security interest, in another's property as collateral for a debt.

Relinquish

To voluntarily give up or surrender a claim, right, or possession.