Q1. Risk and Return Characteristics of an Equity Mutual FundYou are analyzing Sendar Equity Fund, a midcap growth fund that has been in existence for 24 months. During this period, it has achieved a mean monthly return of 1.50 percent with a sample standard deviation of monthly returns of 3.60 percent. Given its level of systematic (market) risk and according to a pricing model, this mutual fund was expected to have earned a 1.10 percent mean monthly return during that time period. Assuming returns are normally distributed, are the actual results consistent with an underlying or population mean monthly return of 1.10 percent?

Q1.1 Formulate null and alternative hypotheses consistent with the description of the research goal

Q1.2 Identify the test statistic for conducting a test of the hypotheses in Q1.1

Q1.3 Identify the rejection point or points for the hypothesis tested in Q1.1at the 0.10 level of significance

Q1.4Determine whether the null hypothesis is rejected or not rejected at the 0.10 level of significance