a. Is the expected return of the fund positive? Formulate your null and alternative hypotheses and conduct the test using both t-test and p-value approach
b. Compute the 95% confidence interval for the expected fund return.
c. Find the prevailing yield on the 10-year Treasury bond from Yahoo Finance. Is the expected return of this fund greater than the yield on the 10-year Treasury bond? Formulate your null and alternative hypotheses and conduct the test using both t-test and p-value approach. Note that the yield given in Yahoo Finance is an annual rate and in percentage. You would need to convert it to a monthly decimal rate.
| Sample Mean |
1.20% |
| Standard Error |
0.53% |
| Sample Variance |
3.05% |
| Sample S.D. |
5.52% |
| Max Return |
14.24% |
| Worst Return |
-17.47% |