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According to many investment counselors, foreign stocks have the potential for a high yield, but the variability in their dividends may be greater than what
According to many investment counselors, foreign stocks have the potential for a high yield, but the variability in their dividends may be greater than what is typical for American companies. According to one brokers report, the standard deviation of dividends earned by domestic service-industry stocks is roughly 3.0%. If the standard deviation of the dividends earned by a random sample of 14 foreign stocks is 5.6%, can we conclude at the 0.05 level of significance that foreign stocks, in general, are more volatile?
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