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Paired Samples t-test vs CAPM Linear Regression (part 1)

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Uploaded by on Jun 22, 2011

I perform an paired samples t-test based on Warren Buffett's investment performance versus the S&P 500. In addition to performing the paired t-test, I suggest that performing a paired samples t-test may be a superior approach to testing alpha and beta, as estimated within the CAPM linear regression approach.

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