Final Answer:
To determine whether portfolio performance is statistically significant requires A hypothesis test.
The correct option is 1
Explanation:
To ascertain whether portfolio performance is statistically significant, conducting a hypothesis test is essential. This involves formulating null and alternative hypotheses and employing statistical methods to assess whether there is sufficient evidence to reject the null hypothesis in favor of the alternative hypothesis.
By performing a hypothesis test, one can determine if the observed portfolio performance is significantly different from what would be expected by chance or random fluctuations. This process involves using appropriate statistical tests to evaluate the significance of the results, which helps in drawing conclusions about the portfolio's performance.
Hypothesis testing provides a structured framework for making statistical inferences about the performance of the portfolio based on sample data, allowing investors and analysts to make informed decisions about its significance.
So, the correct optiton is 1.