The risk of an investment is measured in terms of the variance in the return that could be observed. Random samples of 10 yearly returns were obtained from two different portfolios. The data are given next (in thousands of dollars.)Portfolio 1130135135131129135126136127132Portfolio 2154144147150155153149139140141a. Place a 95% confidence interval on the ratio of the standard deviations of the two portfolios.b. Does Portfolio 2 appear to have a higher risk than portfolio 1? Use ?=0.05 and conduct hypothesis testing.c. What is the P-value for your test in part(b)?d. Write the assumptions you made in part(a) and (b)? The risk of an investment is measured in terms of the variance in the retum thatcould be observed. Random samples of 10 yearly returns were obtained fromtwo different portfolios. The data are given next (in thousands of dollars.)Portfolio 1 130 135 135 131 | 129 135 126| 136 127Portfolio 2 154 144 147 150 155 153 149 139 140132141a. Place a 95% confidence interval on the ratio of the standard deviations of thetwo portfolios.b. Does Portfolio 2 appear to have a higher risk than portfolio 1? Use a = 0.05and conduct hypothesis testing.c. What is the P-value for your test in part(b)?d. Write the assumptions you made in part(a) and (b)?

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Description: The risk of an investment is measured in terms of the variance in the return that could be observed. Random samples of 10 yearly returns were obtained from two different portfolios. The data are given next (in thousands of dollars.)Portfolio 11301351

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MATLAB: An Introduction with Applications

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The risk of an investment is measured in terms of the variance in the return that could be observed. Random samples of 10 yearly returns were obtained from two different portfolios. The data are given next (in thousands of dollars.)
Portfolio 1
130
135
135
131
129
135
126
136
127
132
Portfolio 2
154
144
147
150
155
153
149
139
140
141

a. Place a 95% confidence interval on the ratio of the standard deviations of the two portfolios.

b. Does Portfolio 2 appear to have a higher risk than portfolio 1? Use ?=0.05 and conduct hypothesis testing.

c. What is the P-value for your test in part(b)?

d. Write the assumptions you made in part(a) and (b)?

The risk of an investment is measured in terms of the variance in the retum that
could be observed. Random samples of 10 yearly returns were obtained from
two different portfolios. The data are given next (in thousands of dollars.)
Portfolio 1 130 135 135 131 | 129 135 126| 136 127
Portfolio 2 154 144 147 150 155 153 149 139 140
132
141
a. Place a 95% confidence interval on the ratio of the standard deviations of the
two portfolios.
b. Does Portfolio 2 appear to have a higher risk than portfolio 1? Use a = 0.05
and conduct hypothesis testing.
c. What is the P-value for your test in part(b)?
d. Write the assumptions you made in part(a) and (b)?

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