This assignment analyzes stock returns for Boeing (BA) and General Dynamics (GD) using statistical methods. It begins with calculating stock returns and performing the Jarque-Bera test to determine if the distributions are normal. Hypothesis tests are conducted to compare variances, average returns, and assess the significance of beta in a CAPM model. The analysis includes t-tests, confidence intervals, and F-tests. The results indicate non-normal distributions for both stocks, with GD showing lower risk. The CAPM model is applied, and the regression output is interpreted, including the beta value and R-squared. The assignment concludes with a discussion on the model's validity, hypothesis testing, and the identification of GD as a preferable stock due to lower risk. The residuals of the CAPM model are tested for normality using the Jarque-Bera test.