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Use the accompanying excel data file with monthly returns of TWTR and SNP. SNP is market index return. Run regression of TWTR returns on SNP.
Use the accompanying excel data file with monthly returns of TWTR and SNP. SNP is market index return. Run regression of TWTR returns on SNP. Test the following hypothesis at 5% level of significance. Make sure to state your hypotheses clearly.
a) The intercept is zero.
b) The risk of TWTR is the same as the risk of the market portfolio.
c) Plot the residuals from the regression.
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