Perform a t-test to compare the means of the returns and the log returns. Comment on your findings. Do you reject the null hypothesis that they are the same mean at 5 % significance? Or do you accept...


Perform a t-test to compare the means of the returns and the log returns. Comment on your findings. Do you reject the null hypothesis that they are the same mean at 5 % significance? Or do you accept it? [Hint: Should you be using an independent samples t-test or a paired-samples t-test?] What are the assumptions behind the t-test? Do you think that they are met in this example? If the assumptions made by the t-test are not met, how would this affect your interpretation of the results of the test?



May 26, 2022
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