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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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A trading desk manager at a financial institution oversees the maintenance of currency swap lines and has gathered weekly returns data for a portfolio of currency swaps over the last year. The manager calculates the mean weekly portfolio return as 0.71%, and the sample standard deviation of returns as 0.52%. To determine the statistical significance of the mean weekly return being greater than zero, the manager decides to conduct a hypothesis test at a 5% level of significance. If the manager calculates the test statistic as 2.84, which of the following is correct?

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