The standard deviation of daily returns of a stock’s price is used as a measure of the risk of that stock. Suppose that in a sample of 101 days, the standard deviation of a particular stock is 1. 15%. a) In the past, the standard deviation of the daily returns of this stock has been 1.56%. Test the hypothesis at the 1% level of significance that the standard deviation has decreased from its previous level. 1) The standard deviation of daily returns of a stock's price is used as a measure of therisk of that stock. Suppose that in a sample of 101 days, the standard deviation of aparticular stock is 1.15%.a) In the past, the standard deviation of the daily returns of this stock has been1.56%. Test the hypothesis at the 1% level of significance that the standarddeviation has decreased from its previous level.

Answered: The standard deviation of daily returns…

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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The standard deviation of daily returns of a stock’s price is used as a measure of the risk of that stock. Suppose that in a sample of 101 days, the standard deviation of a particular stock is 1. 15%. a) In the past, the standard deviation of the daily returns of this stock has been 1.56%. Test the hypothesis at the 1% level of significance that the standard deviation has decreased from its previous level.