Question
Suppose that an investor wants to compare the risks associated with two different stocks. One way to measure the risk of a given stock is
Suppose that an investor wants to compare the risks associated with two different stocks. One way to measure the risk of a given stock is to measure the variation in the stock’s daily price changes. The investor obtains a random sample of 25 daily price changes for stock 1 and 25 daily price changes for stock 2.
Hypothesized Mean Difference:
Alternative Hypothesis:
Standard Error:
Degrees of Freedom:
t-Test Statistic :
p-Value :
Null Hypoth. at 10% Significance (Reject or Don't Reject) :
Null Hypoth. at 5% Significance (Reject or Don't Reject) :
Null Hypoth. at 1% Significance (Reject or Don't Reject) :
Data
Day | Price Change |
1 | -0.65 |
2 | -0.04 |
3 | 0.88 |
4 | -0.36 |
5 | -0.67 |
6 | 1.86 |
7 | 1.80 |
8 | 1.03 |
9 | 0.16 |
10 | -0.73 |
11 | 0.90 |
12 | 0.09 |
13 | 0.19 |
14 | -0.42 |
15 | 0.56 |
16 | 1.24 |
17 | -1.16 |
18 | 0.37 |
19 | -0.52 |
20 | -0.09 |
21 | 1.07 |
22 | -0.88 |
23 | 0.44 |
24 | -0.21 |
25 | 0.84 |
Step by Step Solution
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
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