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Hello, @lushukai, At first thanks for the instant reply. Regarding the question, my point is that as a rule of thumb I have realized that the belief is the alternative hypothesis (in this case μ>=9). in the progress of the exercise is stated that Ho>=9. And this is the tricky point. My...

Hello David, I am little bit confused regarding Null Hypothesis initial setup. Generally I have understood that the belief is part of the Alternative. However in case of P1.T2.20.14 the belief is that μ is at least 9 (μ>=9) . In my head, this ios translated to Ha: μ>9. But then the exercise...

Hi David, I am struggling to understand some concepts of ch 6. Please explain why in the formula of σp (portfolio standard deviation) you ignore the weight factor. It is known that the formula is (w1*σ1)^2+(w2*σ2)^2+2w1*w2*σ1*σ2*ρ. However, when you solve it you probably set w1=w2=w3=1, despite...