1. Answer the Performance Evaluation Question from the Case Study.To evaluate the performance of each mutual fund, estimate the CAPM and Multifactor Models as explained in the Notes below.

Using the results of linear regressions formulate and test the null hypothesis whether each mutual fund (GLCGX, TRBCX, DTMVX, DVPEX) performed as expected by the CAPM and Multifactor models. Explain whether you reject or not reject the null hypothesis: alpha=0 at 5% significance level. If a fund did not perform as expected explain whether it over-performed (alpha>0) or underperformed (alpha<0).

2. Test the null hypothesis that market beta is equal to 1 in the CAPM model for TRBCX fund only. Explain whether you reject or not reject the null hypothesis at 5% significance level.