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Mathematics, 08.04.2020 04:47 Jimm6500
Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 5%. A mutual-fund rating agency randomly selects 28 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.66%. Is there sufficient evidence to conclude that the fund has moderate risk at the alpha equals 0.10 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed.
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