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ANSWER ALt QuEsTions. Aniwers must be upleaded in Word/PDF format. a) Singpese we form a potfolie invested in Toyota and ford stocke, Cells B3 C5

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ANSWER ALt QuEsTions. Aniwers must be upleaded in Word/PDF format. a) Singpese we form a potfolie invested in Toyota and ford stocke, Cells B3 C5 in the spreadsheet below display the mean return, variance, and standard deviation of the foyota and ford returns, respectively, Cell B6 reports the Eovariance beiween the two assetg, whereas Cell 89 indicates the portiolio weight of Toyota: b) Estimation of the regression model Y=1+2X+u yields Y^t=1.4+0.25Xt,T=75(9.28)(0.126) where T is the number of observations and the numbers in parentheses are the standard errors of the respective estimators. You wish to test the hypothesis H0:2=1 versus a two-sided alternative hypothesis. i) Write down the alternative hypothesis. ( 2 marks) ii) Form and interpret a 99% confidence interval for the 2 coefficient using the figures above. For the t distribution critical values table please see the 'Statistical Tables' file attached to the quiz. ( 18 marks)

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