cements Suppose you sample two stocks, A and B with na 9 and no - 25 sample sizes respectively. You are told that they g

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Cements Suppose You Sample Two Stocks A And B With Na 9 And No 25 Sample Sizes Respectively You Are Told That They G 1 (40.71 KiB) Viewed 155 times

cements Suppose you sample two stocks, A and B with na 9 and no - 25 sample sizes respectively. You are told that they give approximately the same average return. You are asked to test if the variances are the same. How should you go about this, and what advice should you give to your manager? nts 35 You should form the ratio of sample variances with A on the numerator and tort for equality with an F distribution. If A is more volatile, recommend selling some of it out of the share portfolio. You should form the ratio of sample variances and test for equality with an F distribution. The test will work equally well expressing the ratio either way, though you have to be careful to let your choice of numerator and denominator be reflect in the degrees of freedom of F. If A is more volatile, recommend buying some of into the share portfolio O You should form the ratio of sample variances with A on the numerator and testi equality with an F distribution. If Ais more volatile, recommend buying some of it into the share portfolio You should form the ratio of sample variances and test for equality with an F distribution. The test will work equally well expressing the ratio either way, though you have to be careful to let your choice of numerator and denominator be reflected in the degrees of freedom of F. If A is more volatile, recommend selling some of it out of the share portfolio