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