medium · Market Microstructure mmf-core

A statistician is testing a manager for skill where the manager's true alpha is 3% per year and the standard deviation of excess returns is 10%.

How many years of data are required to confirm this skill at a 95% confidence level (one-sided t-test, t_crit = 1.64)?

  1. 100 years
  2. 15 years
  3. 30 years
  4. 11 years

Sign up free to see the explanation and track your rank →

More Market Microstructure mmf-core practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 92,240+ practice questions, 30,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials