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An investment executive at Parcom Capital, a leading equity firm in the Benelux union, is...

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Finance

An investment executive at Parcom Capital, a leading equity firm in the Benelux union, is analyzing the average annual market returns of a stock. She is considering a null hypothesis, H0, that the average annual returns is 10%, and an alternative hypothesis, H1, that the average annual returns is more than 10%. State the risks of the investment executive committing either a Type I or Type II error.

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