Question: The data appear in Apple-Data.xlsx. https://drive.google.com/file/d/1x8xUNrGB5JqHjwV5q2xpEx31mCld2mF3/view The data set tracks the monthly performance of Apple's stock from January 1990 through December in 2015. The data

The data appear in Apple-Data.xlsx.

https://drive.google.com/file/d/1x8xUNrGB5JqHjwV5q2xpEx31mCld2mF3/view

The data set tracks the monthly performance of Apple's stock from January 1990 through December in 2015. The data includes 312 monthly re- turns on Apple as well as returns on the entire stock market, Treasury Bills, and inflation. (The column Market Return is the return on a value-weighted portfolio that purchases stock in proportion to the size of the company rather than one of each stock.) Formulate a simple regression model with Apple Return as the response and Market Return as the predictor (explanatory variable).

Questions:

1. Is there as statistically significant linear association between returns on Apple's stock and the market?

2.Is the estimate of the intercept, 0, significantly different from zero?

3.Is the estimate of the slope, 1, significantly different from one?

4.This regression uses returns. Had the analysis been done in percent- ages (the percentage changes are 100 times the returns), would any of the previoius answers change? If so, how?

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