The weekly rates of return for five stocks were recorded for the period January 1995 through March 1995. The data provided here are for 16 weekly rates of return. The stocks observed are Allied Chemical, Dow Chemical, Union Chemical, the Standard Oil Company, and Texas oil.

A)State the hypotheses and test for the significance of the canonical correlations

Bartlett's Chi-Squared Test: rho ^2 Chisq df Pr (>X) CV 1 0. 77618 18. 90474 6 0. 004328 ** CV 2 0. 19886 2. 43886 2 0. 295399 Signif . codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 ', ' 01 ' ' 1> r1 r1 CV 1 0. 8810089 > risq risq CV 1 0. 7761766> cc1$xcoef [, 1] Allied Dow Union 0. 03158698 0. 15758801 0. 92246655 > cc1$ycoef [, 1] Standard Texas 0 . 06825228 -1 . 00248457Aggregate Redundancy Coefficients (Total Variance Explained by All CVs, Across Sets): X I Y. 0.4311923 Y I X: 0.4861798