Question
1) Janice wants to buy stock A whose return shows a mean of 2% and a standard deviation of 4% based on 250 daily returns.
1) Janice wants to buy stock A whose return shows a mean of 2% and a standard deviation of 4% based
on 250 daily returns. At the .05 level of significance (or 95% confidence level), she would like to test if
the stock's daily return is equal to 5%. (a) write out the null and alternative hypotheses. (b) Compute
the test statistic. (c) Should she reject or fail to reject the null hypothesis?
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
