Question: complete the following section in Stata. Make sure to include your do-file. This file shows the returns from industry based portfolios (i.e., each return represents
complete the following section in Stata. Make sure to include your do-file. This file shows the returns from industry based portfolios (i.e., each return represents returns from a size weighted portfolio based on public companies that operate in the same industry). PLEASE NOTE YOU DO NOT NEED TO GET THE RETURN. I HAVE ALREADY GIVEN IT TO YOU. Use the portfolio return with the first letter/second letter of your last name for the dependent variable based on this table.
| Last Name Starts With | Industry Portfolio |
| B | Agric |
| Br | Food |
| C | Beer |
| D | Smoke |
| G | Toys |
| Ka | Fun |
| Ki | Books |
| Kl | Hshld |
| L | Clths |
| Ma | MedEq |
| Me | Drugs |
| Mi | Chems |
| Mo | Txtls |
| P | BldMt |
| Q | Cnstr |
| Sc | Steel |
| Se | Mach |
| St | ElcEq |
| Sy | Autos |
| Th | Aero |
| Tu | Ships |
| Up | Mines |
| Ur | Coal |
| V | Oil |
Import the data into Stata.
Get Summary Statistics of Returns and returnsmkt, and discuss.
Conduct a hypothesis test of the population mean for Returns
Run the following Regression:
Display R-squared, and Adjusted R-squared
Interpreted the coefficients, and conduct the following individual hypothesis test:
Save the residuals and predicted values. Create a scatter plot of the predicted values and returnsmkt and a line graph of predicted values and returnsmkt in the same graph. Discuss this graph.
Run the following Regression:
Display R-squared, and Adjusted R-squared, discuss the difference between each model.
Interpreted the coefficient, and conduct the following individual hypothesis test:
Conduct the following joint hypothesis test and interpret the results:
Overall significance
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