A financial analyst maintains that the risk, measured by the variance, of investing in emerging markets is more than 280(%)². Data on 20 stocks from emerging markets revealed the following sample results: = 12.1% and s² = 361(%)². Assume that the returns are normally distributed. Which of the following is the correct conclusion of the financial analyst's claim? A) Do not reject H₀. The financial analyst's claim is supported by the sample data at 1% significance level. B) Reject H₀. The financial analyst's claim is not supported by the sample data at 1% significance level. C) Do not reject H₀. The financial analyst's claim is not supported by the sample data at 1% significance level. D) Reject H₀. The financial analyst's claim is supported by the sample data at 1% significance level.

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The Answer of A financial analyst maintains that the risk, measured by the variance, of investing in emerging markets is more than 280(%)². Data on 20 stocks from emerging markets revealed the following sample results: = 12.1% and s² = 361(%)². Assume that the returns are normally distributed. Which of the following is the correct conclusion of the financial analyst's claim? A) Do not reject H₀. The financial analyst's claim is supported by the sample data at 1% significance level. B) Reject H₀. The financial analyst's claim is not supported by the sample data at 1% significance level. C) Do not reject H₀. The financial analyst's claim is not supported by the sample data at 1% significance level. D) Reject H₀. The financial analyst's claim is supported by the sample data at 1% significance level.

A Financial Analyst Maintains That the Risk, Measured by the Variance