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Before investing in one of the two stocks, you first want to compare risk assoeiated to each of the two stoCks. Perform any appropriate hypothesis

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Before investing in one of the two stocks, you first want to compare risk assoeiated to each of the two stoCks. Perform any appropriate hypothesis test using 5% significance level and interpret your results. You further want to determine whether both stocks have same population average return. Perform an appropriate hypothesis test using information in your sample of 55 observations on returns and report your findings. Also, which stock will you prefer and why? Compute excess return on your preferred stock as y, = r, r\" and excess market return as x. = in...I ~ r\" (that is, you subtract the lift-year TBill rate from return on your preferred stock and the market return that is the return on S&P SUD}. a. Estimate the CAFM using linear regression where the dependent variable is excess return on your preferred stock while the independent variable is excess market return {computed as return on SEEP 50E} minus the risk fee rate} and report your results

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