1) What are the critical values you need to construct a 90% confidence interval for the standard deviation of daily returns ? 2) Calculate a 90% confidence interval for the standard deviation of daily returns .(Round numbers to 1 decimal.) 3) The manager will include a stock in her portfolio only if the standard deviation of daily returns is below 6%. Conduct a hypothesis test to help the manager make her decision, using a significance level of 1% What do you conclude ? (In your answer, show the steps involved with testing.)
1) What are the critical values you need to construct a 90% confidence interval for the standard deviation of daily returns ? 2) Calculate a 90% confidence interval for the standard deviation of daily returns .(Round numbers to 1 decimal.) 3) The manager will include a stock in her portfolio only if the standard deviation of daily returns is below 6%. Conduct a hypothesis test to help the manager make her decision, using a significance level of 1% What do you conclude ? (In your answer, show the steps involved with testing.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Transcribed Image Text:A manager at an investment bank is considering an
investment in Meta stock. As part of her initial
research, she calculates daily returns for the stock
on the 20 trading days between 1/23/2023 and
02/17/2023.
Transcribed Image Text:Date
2/17/2023
2/16/2023
2/15/2023
2/14/2023
2/13/2023
2/10/2023
2/9/2023
2/8/2023
2/7/2023
2/6/2023
2/3/2023
2/2/2023
2/1/2023
1/31/2023
1/30/2023
1/27/2023
1/26/2023
1/25/2023
1/24/2023
1/23/2023
Daily Return (in %)
0.3
-2.7
-1.3
0
3
-2.1
-3
-4.3
3
-0.3
-1.2
23.3
2.8
1.3
-3.1
3
4.1
-1.1
-0.1
2.8
1) What are the critical values you need to
construct a 90% confidence interval for the
standard deviation of daily returns ?
2) Calculate a 90% confidence interval for the
standard deviation of daily returns .(Round
numbers to 1 decimal.)
3) The manager will include a stock in her portfolio
only if the standard deviation of daily returns is
below 6%. Conduct a hypothesis test to help the
manager make her decision, using a significance
level of 1% What do you conclude ? (In your
answer, show the steps involved with testing .)
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