Question: Q5. There are two regressions: rt = u + ber + at (1) rt = c + air; + eVoIt + Ft (2) where ft

Q5. There are two regressions: rt = u + ber +

$at (1) rt = c + air\"; + eVoIt + Ft (2)$

Q5. There are two regressions: rt = u + ber + at (1) rt = c + air\"; + eVoIt + Ft (2) where ft is stock returns, TM; is market returns= and Fair is market volatility. State the null hypothesis if regression (1) is nested in regression (2). [2]

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