If you estimate the beta OLS for stock i is 1.5, the standard error is 0.3....

If you estimate the beta OLS for stock i is 1.5, the standard error is 0.3. To test the two null hypothesis:β=3.5,β=-1，can you reject these two null hypotheses at 10% significance level with the t_critical = 2.96?

	A.	β=3.5 cannot be rejected,β=-1 can be rejected
	B.	β=3.5 can be rejected,β=-1 cannot be rejected
	C.	β=3.5 can be rejected,β=-1 can be rejected
	D.	β=3.5 cannot be rejected,β=-1 cannot be rejected

Expert Solution

orchestra answered 1 year ago

If you estimate the beta OLS for stock i is 1.5, the standard error is 0.3....

If you estimate the beta OLS for stock i is 1.5, the standard error is 0.3. To test the two null hypothesis:β=3.5,β=-1，can you reject these two null hypotheses at 10% significance level with the tcritical = 2.96? A. β=3.5 cannot be rejected,β=-1 can be rejected B. β=3.5 can be rejected,β=-1 cannot be rejected C. β=3.5 can be rejected,β=-1 can be rejected D. β=3.5 cannot be rejected,β=-1 cannot be rejected

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If you estimate the beta OLS for stock i is 1.5, the standard error is 0.3....

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