Conduct a two-sample t-test at a 1% level of significance to find out if the mean U.S. stock return (RSUS) significantly outperforms the mean US bond return (RBUS) using the monthly data covering the sample period 1980-2020. Draw your conclusion by both the P-value method and the Critical Value Method. Use t-test: Two-sample Assuming unequal variances in Excel to obtain the Excel printout. t-Test: Two-Sample Assuming Unequal Variances RSUS RBUS Mean 1.0308524 0.69355124 Variance 19.0559748 3.74148094 Observations 491 491 Hypothesized Mean Difference 0 df 675 t Stat 1.56536415 P(T<=t) one-tail 0.05898311 t Critical one-tail 1.64711418 P(T<=t) two-tail 0.11796622 t Critical two-tail 1.96348466
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S. stock return is equal to the mean U.S. bond return: \(H_0: \mu_{RSUS} = \mu_{RBUS}\). ** Show more…
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