90.2K

Verified Solution

Link Copied!

D Question 21 6.67 pts Below is part the regression output of a market model regression, R; = 0; +B; Rm + el, where Ri is the rate of return of AMAT and Rm is the rate of return of the S&P 500 index return. There are 59 observations. regression output of R; = a; + B; Rm + el Standard Coefficients Error t Stat P-value Lower 95% Upper 95% Intercept|0.03113 0.0116212.6787335 0.00964 0.007859|0.054401 X Variable -0.09624 0.05511 -1.7464036 0.08613 -0.2066 0.014111 1 w If you perform a test of hypothesis on the slope coefficient, Ho: B = 0; H: B +0, use the information provided, which of the following statements is correct? Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept|0.03113 0.011621 2.6787335 0.00964 0.007859|0.054401 Variable -0.09624 1 0.05511 -1.7464036 0.08613 -0.2066 0.014111 If you perform a test of hypothesis on the slope coefficient, Ho: B=0; H:30, use the information provided, which of the following statements is correct? Fall to reject the null hypothesis at 5% level of significance: reject the null hypothesis at 10% level of significance. O Reject the null hypothesis at 5% level of significance; fail to reject the null hypothesis at 10% level of significance. O Fail to reject the null hypothesis at 5% level of significance; fail the null hypothesis at 10% level of significance. Reject the null hypothesis at 5% level of significance; reject the null hypothesis at 10% level of significance

Answer & Explanation Solved by verified expert

See Answer