Solve the following questions:

Question 3.1 (7 points) You are asked to analyze the monthly returns on portfolio 15 in the Fama-French database. You have available, for the same sample of observations, the following plot and regression output: ER_15 by Season Dependent Variable: ER 15 Method: Least Squares Date: 01/13/16 Time: 10:14 Sample (adjusted): 1950M01 2014M06 3- Included observations: 774 after adjustments 7- Variable Coefficient Sid. Error 1-Statistic Prob C 0.002099 0.0512 @SEAS(1 0.072481 0.007063 10.26166 0.0000 ER_15(-1) 0.270673 0.032529 8.321064 0.0000 R-squared 0.182912 Mean dependent var 0.013989 Adjusted R-squared 0.180792 S.D. dependent var 0.060213 -2- S.E. of regression 0.054499 Akaike info criterion -2 977416 Sum squared resid 2.289942 Schwarz criterion -2 959387 Log likelihood 1155.260 Hannan-Quinn criter. -2 970480 Jan Feb Mar Apr May Jun Jul Aug Sep Out Nov Dec F-statistic 86.29722 Durbin-Watson stat 1.955852 awww. Moans by Samson Prob(F-statistic) 0.000000 3.la (0.5 point) How is the portfolio 15 in the Fama French database constructed?3.1b (1.5 points) Carefully illustrate how the plot was constructed and intepret the evidence illustrated in it.3.1c (2 points) Discuss the specification of the regression model and indicate the interpretation of each regression coefficient.3.1d (3 points) Fill the gaps in the regression output and provide a test for the null hypothesis that the constant in the regression is equal to 0.07. Make sure to show your work and calculations