Referencing Styles : Harvard Test the null hypothesis that the population mean of your stock return is equal to that of the market return, against an appropriate alternative hypothesis.  State the assumptions under which the test is valid. 
  Based on the outcome of the test, explain whether your stock is more or less profitable 
than the market portfolio; or whether they are equally profitable. 
Question 2: [10 marks: 8 + 1+ 1] 
  Test the null hypothesis that the population variance of your stock return is equal to that of the market return, against an appropriate alternative hypothesis. 
  State the assumptions under which the test is valid. 
  Based on the outcome of the test, explain whether your stock is more or less volatile 
than the market portfolio; or whether they are equal volatility. 
 Question 3: [10 marks: 2+2+2+2+2]  Report a scatter plot between the stock return (Y-axis) and market return (X-axis) 
  Using the scatter plot, provide the descriptive features of the relationship (direction 
and strength) between the two in less than 50 words. 
  Report and interpret the correlation coefficient. 
  Test the null hypothesis that the population correlation is statistically zero against an appropriate alternative hypothesis. 
  State the assumptions under which the test is valid.
Run the simple regression between the stock return (dependent variable) and market portfolio 
return (independent variable). 
 Question 4: [10 marks: 6 + 2 + 2] 
  Interpret the intercept and slope estimates, paying attention to the profitability and riskiness of your stock in comparison with the market portfolio. 
  Interpret the value of R2. 
  Suppose you expect the market return in the next month to be -5%, what is the expected return of your stock? Question 5 [10 marks: 5+5]  Based on your findings from correlation and regression analyses, provide a non- technical summary of the properties of your stock, in comparison with those of the market portfolio, in less than 100 words. 
  Discuss possible limitations of your correlation and regression analysis in less than 100 words.