Statistical Analysis of Stock Performance in Finance and Business

This report presents a statistical analysis of the performance of two stocks, Boeing Company and General Dynamics, using data from July 1, 2012, to July 1, 2017. It employs quantitative techniques such as hypothesis testing and sample estimation. The analysis includes the calculation of the CAPM model, risk and return relationships, and the use of S&P 500 Price Index and interest rates on 10-Year US Treasury Notes. The report computes returns, conducts Jarque-Bera tests for normality, and examines the relationship between risk and average return. T-tests are used to compare the stocks, assuming unequal and equal variances. Finally, the report includes CAPM linear regression analysis for both stocks, calculating and interpreting beta coefficients to assess stock volatility and risk. The report provides a comprehensive overview of the statistical analysis of stock performance.