An important measure of the risk associated with a stock is the standard deviation,or variance,of the stocks price movements. A financial analyst wants to test the one tailed hypothesis that stock A has a greater risk(larger variance of price) than stock B.A random sample of 25 daily prices of stock A gives s^2A=6.52 and a random sample of 22 daily prices of stock B gives a sample variance of s^2B=3.47. Carry out the test at alpha=0.01.
An important measure of the risk associated with a stock is the standard deviation,or variance,of the stocks price movements. A financial analyst wants to test the one tailed hypothesis that stock A has a greater risk(larger variance of price) than stock B.A random sample of 25 daily prices of stock A gives s^2A=6.52 and a random sample of 22 daily prices of stock B gives a sample variance of s^2B=3.47. Carry out the test at alpha=0.01.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Transcribed Image Text:An important measure of the risk associated with a stock is the standard deviation,or variance,of the stocks
price movements. A financial analyst wants to test the one tailed hypothesis that stock A has a greater
risk(larger variance of price) than stock B.A random sample of 25 daily prices of stock A gives s^2A=6.52 and
a random sample of 22 daily prices of stock B gives a sample variance of s^2B=3.47. Carry out the test at
alpha=0.01.
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