Answer
$X_0^2\lt X_{1-α}^2$: null hypothesis is rejected.
There is enough evidence to conclude that the fund has moderate risk.
Work Step by Step
$H_0=~σ=0.04$ versus $H_1:~σ\lt0.04$
$X_0^2=\frac{(n-1)s^2}{σ_0^2}=\frac{(25-1)0.0301^2}{0.04^2}=13.590$
Left-tailed test:
$n=25$
$d.f.=n-1=24$
$X_{1-α}^2=X_{0.95}^2=13.848$
Since $X_0^2\lt X_{1-α}^2$, we reject the null hypothesis.
