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or this part of the assignment, you will need to use the HML factor and market excess returns from hw3data.xlsx (in the sheet labeled “Fama-French Factors”). The HML factor is the difference in returns between the high book-to-market portfolio and the low book-to- market portfolio.,1. Report the average of HML. What is the standard error of this estimate? What is the 95% confidence interval? Is the average of HML statistically different from 0?,2. Report the CAPM beta and alpha of the HML portfolio. Are these estimates statisti- cally significant? What are the possible economic sources of this alpha?,3. Are the results in (1) or (2) better evidence that a strategy that is long value and short growth generates abnormal returns? Why?

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