Problem 1: Warren Buffett vs John Maynard Keynes The datasets buffett . txt and keynes . txt contain the investments records of two fa- mous investors: Warren Buffett and John Maynard Keynes. They both had very different in- vestments styles which both turned out to be very successful. Your job is to use regression analysis to quantify their styles and assess their investment records. The market model of asset returns assumes that returns of an investors portfolio are linearly related to those on the market, i.e. Y = o + BX + c. Here Y is the return of Buffett's or Keynes' portfolio and X is the return on the market (S&P500 for Buffett and FTSE100 for Keynes). The error term, , corresponds to idiosyncratic risk of the portfolio. (a) Build the market model for Warren Buffett and Keynes (b) Interpret the regression coefficients alpha and beta for both investors What do they tell you about their investment styles? (c) Provide a prediction of returns to their portfolios in the two scenarios for the market returns, first +10% and then -10%. Explain clearly your findings