interpret the coefficients of the regression and perform hypothesis testing Is the alpha important

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The data set contains the returns of four portfolios assigned to you (r_portXX). Each of these four series can be used to study the Capital Asset Pricing Model (CAPM) model. TASKS:  For each of the four portfolios, depict the individual asset's risk premium against the market risk premium on a scatter diagram. Comment on the diagrams.  Estimate the CAPM by means of the Ordinary Least Squares estimator using the four portfolios. Discuss the explanatory power and the goodness of fit of the model. Are the portfolios aggressive or defensive assets?  The two parameters are related to the ALPHA and BETA of the risk premium return series. Interpret the coefficients of the regression and perform hypothesis testing. Is the ALPHA important? Is the systematic risk (“BETA”) of investment higher or lower than the market systematic risk? Perform appropriate tests. Carefully outline the null and alternative hypotheses for each test. Explain how the test statistic is constructed and how it is distributed.

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