an investment specialist claims that if one holds a portfolio

An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the S&P 500, then it is possible to reduce the variability of the portfolio's return. In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 index and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 index, is collected. A regression analysis was performed by regressing the returns of the prison stocks portfolio ( on the returns of S&P 500 index (X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance. The results are given in the following EXCEL output. Standard Error 0.3574 Coefficients 4.8660 -0.5025 Intercept S&P T Stat P-value 13.61360 .0000 -7.0186 0.0000 0,0716 To test whether the prison stocks portfolio is negatively related to the S&P 500 index, the measured value of the test statistic is 0.072. -7.019 0.357. -0.503