Stock: HD, IP, RAD

Date: from 01-01-2000 to current

mean return of statistically different from each other at the 1% level of significance

Two significant financial events have occurred in recent history. On September 15, 2008 Lehman Brothers declared bankruptcy and a Global Financial Crisis started. On March 11, 2020 the WHO declared COVID-19 a pandemic. Use linear regression to determine if

a. Any of the stocks in your data exhibit positive returns over time. b. Either of the two events had a significant impact on returns.

Report the regression output for each stock and interpret the results to address these two questions. How would you interpret this information in the context of your chosen portfolio? ## Add a column to your returns data set. ## This is a factor variable with three levels: ## 'Lehman Bankruptcy' for the date 2008-09-15, ## 'Pandemic' for the date 2020-03-11, and ## 'BAU' (Business as usual) for all other dates. ## Then run a regression analysis to determine whether returns to each stock are increasing over time