Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all thescratch work. 1) The standard deviation of daily returns of a stocks price is used as a measure of the risk of

please show all thescratch work.

1) The standard deviation of daily returns of a stocks price is used as a measure of the risk of that stock. Suppose that in a sample of 101 days, the standard deviation of a particular stock is 1.15%.a) Find the 90% confidence interval of the population variance for this stock.

b) In the past, the standard deviation of the daily returns of this stock has been 1.56%. Test the hypothesis at the 1% level of significance that the standard deviation has decreased from its previous level.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Real Analysis

Authors: Robert G. Bartle, Donald R. Sherbert

4th edition

471433314, 978-1118135853, 1118135857, 978-1118135860, 1118135865, 978-0471433316

More Books

Students also viewed these Mathematics questions