During a20-year period,that standard deviation of annual returns on a portfolio John is analyzingwas8percent.Hesuspected that the portfolio's underlying variance of return was less than100basis points.He would like to construct a hypothesis test to validate his judgment.

Question A:Formulate null and alternative hypothesis.

Question B:Calculate the value of test statistic for conducting the test in part (a).

Question C:Identify the rejection point or points at the5%significance level for the hypothesis in part(a).(Use excel functions for the rejection point)

CHISQ.DIST(x, degrees freedom, True/False) CHISQ.INV(probability, degrees_freedom) NORM.S.DIST(z, True/False) NORM.S.INV(probability) F.DIST(x, degrees freedom], degrees freedom2, True/False) F.INV(probability, degrees freedom], degrees freedom2) T.DIST(x, degrees_freedom, True/False) T.INV(probability, degrees_freedom)