Null and alternative hypotheses be on the coefficients

Assignment Help Financial Management

Reference no: EM131543684

Say you think your positive pairs trade returns are due to pairs trades you made on small stocks (measured by market capitalization). Describe how would you test this hypothesis? What regression equations would you use, and what would your null and alternative hypotheses be on the coefficients? If your positive pair trade returns are indeed from trades on small stocks, would you expect to accept or reject the null hypotheses for your coefficients??

Reference no: EM131543684

Questions Cloud

Is the swiss franc at a forward premium or discount : Is the Swiss franc at a forward premium or discount?

Short-term interest rates are also pro-cyclical : Suppose a firm has sales that are highly correlated with economic conditions. Short-term interest rates are also pro-cyclical.

Expected return on an equally weighted portfolio : What is the expected return on an equally weighted portfolio of these three stocks?

Would you enter into a pairs trade with these two stocks : Would you enter into a pairs trade with these two stocks? Explain clearly why you would or would not. ?

Null and alternative hypotheses be on the coefficients : what would your null and alternative hypotheses be on the coefficients?

Put option has an exercise price : A put option has an exercise price of $1.36/€ and a premium of $.015/€. A call option has an exercise price of $1.36/€ and a premium of $.035/€.

What was your total dollar return on this investment : Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

Real terms versus mxn : Last year, the USD depreciated 2% in real terms versus MXN. Inflation in the US was 2% and inflation in Mexico was 7%. In nominal terms, the USD approximately

What is enterprise data analytics : What is enterprise data analytics? What are the two most important reasons for using data analytics in business today? Explain.

User Account

All Pages