Suppose there are 5,547 daily observations for the returns of stocks in the Fortune 500 portfolio. The portfolio average return is 0.0213 with a standard deviation of 0.7832. Formally state the hypothesis test on whether the return on the Fortune 500 portfolio is different from 0. Use a two-tailed test. Using the confidence interval method, test your hypothesis at the 90% confidence level. Explicitly state the results of the test. Using the t-test method, determine at which conventional significance levels you can reject the null hypothesis and refute your friend’s claim (if any).
Suppose there are 5,547 daily observations for the returns of stocks in the Fortune 500 portfolio. The portfolio average return is 0.0213 with a standard deviation of 0.7832. Formally state the hypothesis test on whether the return on the Fortune 500 portfolio is different from 0. Use a two-tailed test. Using the confidence interval method, test your hypothesis at the 90% confidence level. Explicitly state the results of the test. Using the t-test method, determine at which conventional significance levels you can reject the null hypothesis and refute your friend’s claim (if any).
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.2: Expected Value And Variance Of Continuous Random Variables
Problem 10E
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- Suppose there are 5,547 daily observations for the returns of stocks in the Fortune 500 portfolio. The portfolio average return is 0.0213 with a standard deviation of 0.7832.
- Formally state the hypothesis test on whether the return on the Fortune 500 portfolio is different from 0. Use a two-tailed test.
- Using the confidence interval method, test your hypothesis at the 90% confidence level. Explicitly state the results of the test.
- Using the t-test method, determine at which conventional significance levels you can reject the null hypothesis and refute your friend’s claim (if any).
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