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The market model relating the rate of return of stock XYZ (denoted RXYZ) to the rate of return Of a broader index of the stock market (denoted RM) is reported as:

RXYZ = 4.46 + 0.304RM

Coefficient

Standard Error

4.460

3.0400

0.304

0.3243

 

Analysis of Variance

 

 

Source

DF

Sum of Squares

Regression

?

141.9

Residual

?

3718.9

Total

24

?

Which of the following is an appropriate null hypothesis?

(Hint: You must complete the table to answer the question.)

a. H0: beta1 = 0
b. H0: beta1 = beta0
c. H0: beta1 ≠ 0
d. H0: beta1 ≠ beta0

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M9167180

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