Answer to Question #23999 in Economics for thanhlong

Question

The standard deviation of a stock is commonly used as one indicator for the risk associating the stock.
To analyze the risk, or volatility, associated with investing in Chevron Corporation common stock, a
sample of the monthly total percentage return for 12 months was taken. The returns for the 12 months of
2005 show that the average monthly return was 1.17% and standard deviation 7.58% in these 12 months.
You have a portfolio with similar average return and a standard deviation 8%. Is the Chevron stock
riskier than the portfolio? (p-value approach, =1%