Page 62 - FINAL CFA SLIDES DECEMBER 2018 DAY 4

Session Unit 3:
12. Hypothesis Testing (A/C/B/C/A/C/C)

A. Since the observations are likely dependent (both related to market returns), a paired comparisons
(mean differences) test is appropriate and is based on a t-statistic.

C. When the variances are assumed to be unequal, we just calculate the denominator (standard error)
differently and use both sample variances to calculate the t-statistic.

C.