A researcher has gathered data on the daily returns on a portfolio of call options over a recent 250-day period. The mean daily return has been 0.001 and the sample standard deviation of daily portfolio returns is 0.0025. The researcher believes that the mean daily portfolio return is not equal to zero.

a) Construct a hypothesis test of the researchers belief at the 5% level of significance.

b) The researcher now wishes to test his belief that the mean daily return is strictly positive. Construct a hypothesis test of this belief at the 5% level of significance.

c) Construct a 95% confidence interval for the true mean return.

 

 

Posted Date: 3/1/2013 7:31:59 AM | Location : United States

Ask an Expert

Related Discussions:- Construct confidence interval for the true mean return, Assignment Help, Ask Question on Construct confidence interval for the true mean return, Get Answer, Expert's Help, Construct confidence interval for the true mean return Discussions

Write discussion on Construct confidence interval for the true mean return
Your posts are moderated

Write your message here..

Related Questions

Difference between the mean potency – t - test, A researcher working for a ... A researcher working for a drug company is interested in investigating the effect of storage on the potency of one of the company's drugs. 10 freshly produced bottles of the drug a

ANOVA, This problem will introduce the learner into a technique called Anal... This problem will introduce the learner into a technique called Analysis of Variance. For this course we will only conduct a simple One-Way ANOVA and touch briefly on the importan

Correlation'' Pearson, definitions definitions

Individual tax accounting, need help with exercise that asks to calculate g... need help with exercise that asks to calculate gross income, adjusted gross income and taxable income based on items1-13, which i can submit the exercise copies as soon as you tell

Psy 1110 Ohio University, do you give the answers with the way you figured ... do you give the answers with the way you figured the problem out?..

Cost behaviour, variable cost per unit remain constent why variable cost per unit remain constent why

Identification of null and alternative hypotheses, A politician claims that... A politician claims that the mean salary for managers in his state is more than national mean $82,000.  The salaries (in dollars) for a random sample of 30 managers in the state ar

Kurtosis, how solve and get kurtosis how solve and get kurtosis

Compute the data using both Megastats and Excel Data, AA major razor blade ... AA major razor blade manufacturer advertises that its twin-blade disposable razor “gets you lots more shaves” than any single-blade disposable razor on the market. A rival company

Amortized cost , Amortized cost The par value of its decision enhanced or ... Amortized cost The par value of its decision enhanced or lowered by any unamortized top quality or lower price.