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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.
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