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Standard deviation of retums is often used as a measure of a mutual fund's volatility (risk). A larger standard deviation of returns is an indication of higher risk According to Morningstar.com Llune 17, 2010), the American Century Equity Income Institutional Fund, a large cap fund, has a standard deviation of returns equal to 14.58 percent. Morningstar.com also reported that the Fidelity Small Cap Discovery Fund has a standard deviation of returns equal to 27.57 percent. Each standard deviation was computed using a sample of the value of the test statistic (Do not round intermediate calculations. Round your answer to 2 decimal places) (b) Calculate the critical value by using excel (Round your answer to 2 decimal places.) (c) At the 10 significance level, what it the conclusion?

Standard deviation of retums is often used as a measure of a mutual fund's volatility (risk). A larger standard deviation of returns is an indication of higher risk According to Morningstar.com Llune 17, 2010), the American Century Equity Income Institutional Fund, a large cap fund, has a standard deviation of returns equal to 14.58 percent. Morningstar.com also reported that the Fidelity Small Cap Discovery Fund has a standard deviation of returns equal to 27.57 percent. Each standard deviation was computed using a sample of the value of the test statistic (Do not round intermediate calculations. Round your answer to 2 decimal places) (b) Calculate the critical value by using excel (Round your answer to 2 decimal places.) (c) At the 10 significance level, what it the conclusion?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Standard deviation of returns is often used as a measure of a mutual fund's volatility (risk)A larger standard deviation of returns is an Indication of higher risk. According to Morningstar.com (June 17, 2010 ), the American Century Equity Income Institutional Funda large cap fundhas a standard deviation of returns equal to 14.58 percentMorningstar.com also reported that the Fidelity Small Cap Discovery Fund has a standard deviation of returns equal to 27.57 percentEach standard deviation was computed using a sample of Size 31.

 

Standard deviation of returns is often used as a measure of a mutual fund's volatility (risk). A larger standard deviation of returns is an indication of higher risk According to Morningstar.com Llune 17, 2010), the American Century Equity Income Institutional Fund, a large cap fund, has a standard deviation of returns equal to 14.58 percent. Morningstar.com also reported that the Fidelity Small Cap Discovery Fund has a standard deviation of returns equal to 27.57 percent. Each standard deviation was computed using a sample of size 21 (a) Calculate the value of the test statistic (Do not round intermediate calculations. Round your answer to 2 decimal places.) (b) Calculate the critical value by using excel (Round your answer to 2 decimal places) (c) At the 10 significance level, what it the conclusion? Help
Transcribed Image Text:Standard deviation of returns is often used as a measure of a mutual fund's volatility (risk). A larger standard deviation of returns is an indication of higher risk According to Morningstar.com Llune 17, 2010), the American Century Equity Income Institutional Fund, a large cap fund, has a standard deviation of returns equal to 14.58 percent. Morningstar.com also reported that the Fidelity Small Cap Discovery Fund has a standard deviation of returns equal to 27.57 percent. Each standard deviation was computed using a sample of size 21 (a) Calculate the value of the test statistic (Do not round intermediate calculations. Round your answer to 2 decimal places.) (b) Calculate the critical value by using excel (Round your answer to 2 decimal places) (c) At the 10 significance level, what it the conclusion? Help
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