An investor wants to compare the risks associated with two d

An investor wants to compare the risks associated with two different stocks. One way to measure the risk of a given stock is to measure the variation in the stock

Solution

The degree of freedom df1=n1-1=21-1=20

The degree of freedom df2 =n2-1=21-1=20

Given a=0.05, the critical value is

F(0.95, df1=20, df2=20) =2.12 (from F table)