The following data represent the 5-year rate of return (in percent) for a random sample of stocks

Question:

The following data represent the 5-year rate of return (in percent) for a random sample of stocks in financial services and an independent random sample of stocks in health care

Financial Services 17.34 16.13 10.26 15.62 15.91 10.16 21.25 22.32 28.30 26.31 24.48 21.76 23.90 17.51 16.93 17.19 27.53

(a) Has there been a difference in the rate of return of companies in the Financial Services sector versus those in the Health Care sector over the past 5 years? Use an Î± = 0.05 level of significance.
(b) Is there a difference in the standard deviation rate of return between the two sectors? Remember, standard deviation is a measure of risk in equities.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...