Of the 23 stocks that the young investor bought over the

Reference no: EM13635596

A young investor believes that he can beat the market by picking stocks that will increase in value. Assume that on average 46% of the stocks selected by a portfolio manager will increase over 12 months. Of the 23 stocks that the young investor bought over the last 12 months, 13 have increased. Can he claim that is bes better at predicting increases than the typical portfolio manager? Test at a=.05

1. What are the null and alternative hypotheses for this test?

2. Calculate the test statistic

3. What is the p-value for the test statistic

4. What can investor conclued? (reject null, etc.)

Reference no: EM13635596

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