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(12 pts) You conjecture that there is no relationship between oil price returns and S&P 500 returns. You estimate the regression RSP500=a+bRoil+ and find b=0.25
(12 pts) You conjecture that there is no relationship between oil price returns and S\&P 500 returns. You estimate the regression RSP500=a+bRoil+ and find b=0.25 with standard error 0.15 and a^=2.1% with standard error 0.7%. i) Is your conjecture correct, based on this evidence? ii) According to your estimates, if the oil price return is 2%, what do you expect the return on the S\&P 500 to be
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