easy · Quantitative Finance
A strategy's daily returns over 400 days show a sample mean of 0.10% and a daily volatility of 1.6%.
At a 5% significance level (two-tailed), is the null hypothesis that the true mean is zero rejected?
- Yes, because the sample size is large enough.
- Yes, because the t-statistic is 2.50.
- No, because the t-statistic is 1.25.
- No, because the mean return is less than the volatility.
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