l. The data set Portfoliasformed_on_ME_eq1-Ebtt contained portfolios constructed based on the narlcet value of the company (total outstanding number of stock shares times the stock price). Columns 11 is the returns of the portfolio contains (equally weighted) the smallest 19% of the :ompanies in terms of their market value. See hpfmbaiuclcdartmouth.edu/pagesffacultyfhen.enchr'data library.html for details. answer the following questions: (1) Calculate the market returns by taking the weighted average of columns 3 to 5, with weights 0.3, 0.4 and as. (a) Plot the market return series (plotfx,type= 'l') will do). (11) Comment on the features you see in the gure (2) Use the data om 1965.01 to 1969.12 (rows 463:522) only to fit a simple linear regression using Column 11 (the small company portfolio} as the response variable and the market return you obtained in (1) as explanatory variable. Answer the following questions: (a) Draw a scatter plot and add the estimated regression line to the plot. (11) What is the standard error of in for estimating ,3]? (c) Obtain a 95% condence interval for b]. What does a confidence interval mean in general? (d) What is the pvalue for testing Ha : t: I 0 vs H1 : .30 f: 0? What is your conclusion? (e) What is the pvalue for testing Ha : :31 = 0 vs H1 : 151 0? What is your conclusion? (f) Perform a 596 level test for testing Ho :31 = 1 vsH1:1f= 1? What is yor conclusion? (g) Obtain the R2 of this linear regression model. H'hat does it mean? Comment on it. (h) Obtain the F statistic and its pvalue. What test is the pvalue associated with? (i) Estimate the mean of returns of the small company portfolio when the general market