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During a 5-year period, the variance of annual returns on a portfolio you are analyzing was 225. The assumption is that the portfolios underlying variance
During a 5-year period, the variance of annual returns on a portfolio you are analyzing was 225. The assumption is that the portfolios underlying variance of return in actually equal to 400. Do you have sufficient evidence to support the conclusion that the portfolios underlying variance of return is different from the assumed 400? Identify the appropriate test statistic for testing the hypotheses.
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