9. During a 10-year period, the standard deviation of annual returns on a portfolio you are analyzing was 15 percent a year. You want to see whether this record is sufficient evidence to support the conclusion that the portfolio’s underlying variance of return was less than 400, the return variance of the portfolio’s benchmark.

A. Formulate null and alternative hypotheses consistent with the verbal description of your objective.

B. Identify the test statistic for conducting a test of the hypotheses in Part A.

C. Identify the rejection point or points at the 0.05 significance level for the hypothesis tested in Part A.

D. Determine whether the null hypothesis is rejected or not rejected at the 0.05 level of significance.