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Question: A stockbroker who wants to compare mean returns and risk (measured by variance) of two stocks and gets the following results:
First stock Second stock
N1 = 31 N2 = 31
1 = 0.45 2 = 0.35
S1 = 0.60 S2 = 0.40
Are there any significant differences in the mean returns and risks? (Assume that daily price changes are normally distributed.)
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