Question: Q1 : A financial analyst is exploring the relationship between the return eamed by stocks and the return earned by bonds . For a period

Q1 : A financial analyst is exploring the relationship between the return eamed by stocks and the return earned by bonds . For a period of n = 32 months , the analyst records the return on a particular stock denoted X and the return on a particular bond , denoted Y. The relevant sample statistics are recorded below : Monthly Retums Stock X ) Bond ( ) Mean 2.5 2.2 Standard Deviation 2.0 1.5 Assume that X and Y are uncorrelated and perfom hypotheses tests to determine whether the two population variances are equal . ( Using 0.01 significance level )

Q1: A financial analyst is exploring the relationship between the return earned by stocks and the return earned by bonds. For a period of n = 32 months, the analyst records the return on a particular stock, denoted X, and the return on a particular bond, denoted Y. The relevant sample statistics are recorded below: Monthly Returns Stock (X) Bond (Y) Mean 2.5 2.2 Standard Deviation 2.0 1.5 Assume that X and Y are uncorrelated and perform hypotheses tests to determine whether the two population variances are equal. (Using 0.01 significance level)

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