A Financial Analyst Maintains That the Risk,measured by the Variance,of

Multiple Choice

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.