Exercise 1 The one step return rates of a stock prices $(t) have been observed over a time interval divided into 3 periods based on 6 independent scenarios where observations for each scenario are listed in the following table scenario K K2 K3 W1 12 % 15 % 9% w2 -9% 11% -5% w3 7% 8% 7% w4 13% 6% 9% w5 16% -7% 11% w6 16% -7% 12 % Under significance 5% and the return rate K (0,3) subjecting to a normal population, 1) Test that (0.3) = 11% against HK (0.3) 11% 2) Test that K(03) = 3% against OK (0.3) 73% Exercise 1 The one step return rates of a stock prices $(t) have been observed over a time interval divided into 3 periods based on 6 independent scenarios where observations for each scenario are listed in the following table scenario K K2 K3 W1 12 % 15 % 9% w2 -9% 11% -5% w3 7% 8% 7% w4 13% 6% 9% w5 16% -7% 11% w6 16% -7% 12 % Under significance 5% and the return rate K (0,3) subjecting to a normal population, 1) Test that (0.3) = 11% against HK (0.3) 11% 2) Test that K(03) = 3% against OK (0.3) 73%