T test statistics help

[sgcannon]

I want to use a paired t test in excel to compare my monthly investment returns with that of the s&p 500. Each month will have my return which will be compared with the return of the s&p 500. I want to know if my returns are significantly better than those of the s&p 500. Do I use the paired two sample for means, two sample assuming equal variances or two sample assuming unequal variances?

Thanks,

Steve

 

[AhoyNC]

You would use one of the two sample t-test since you are comparing two different groups (stocks). Paired t-test is used when when comparing the same stock (group) at different times / conditions.
You could use the F-test to see if you have equal variances between the stocks.

 

[sgcannon]

I want to use a paired t test in excel to compare my monthly investment returns with that of the s&p 500. Each month will have my return which will be compared with the return of the s&p 500. I want to know if my returns are significantly better than those of the s&p 500. Do I use the paired two sample for means, two sample assuming equal variances or two sample assuming unequal variances?

Thanks,

Steve

You would use one of the two sample t-test since you are comparing two different groups (stocks). Paired t-test is used when when comparing the same stock (group) at different times / conditions.
You could use the F-test to see if you have equal variances between the stocks.

Thank you!