The accompanying data file has the monthly returns (in %) for Apple over a five-year period. Estimate the capital asset pricing model (CAPM) for Apple where the risk-adjusted stock return (Apple_Adj) is the response variable and the risk-adjusted market return (Market_Adj) is the explanatory variable.

a. At the 5% significance level, is Apple’s return riskier than that of the market?

b. At the 5% significance level, do abnormal returns exist?

c. Use a residual plot to analyze the potential problem of correlated observations.

Month	Apple_Adj	Market_Adj
1	4.7	2.21
2	-9.65	-0.31
3	-8.8	0.74
4	11.85	0.84
5	-15.47	-3.48
6	-4.57	-0.38
7	18.27	0.11
8	-0.58	1.71
9	13.07	2.07
10	4.92	2.75
11	12.62	1.22
12	-7.84	0.86
13	0.65	1
14	-1.73	-2.61
15	9.39	0.57
16	7.01	3.92
17	21.04	2.86
18	0.33	-2.15
19	7.57	-3.59
20	4.76	0.94
21	10.51	3.27
22	23.46	1.17
23	-4.37	-4.71
24	8.47	-1.1
25	-31.89	-6.34
26	-7.83	-3.66
27	14.67	-0.71
28	21.13	4.67
29	8.36	0.92
30	-11.43	-8.74
31	-5.2	-1.12
32	6.52	1.08
33	-33.03	-9.15
34	-5.36	-16.97
35	-13.87	-7.49
36	-7.9	0.78
37	5.6	-8.57
38	-0.93	-11.01
39	17.69	8.53
40	19.69	9.38
41	7.92	5.3
42	4.87	0.01
43	14.7	7.4
44	2.94	3.35
45	10.18	3.57
46	1.7	-1.98
47	6.05	5.73
48	5.41	1.77
49	-8.86	-3.7
50	6.53	2.85
51	14.84	5.87
52	11.09	1.46
53	-1.62	-8.21
54	-2.09	-5.39
55	2.26	6.86
56	-5.51	-4.76
57	16.71	8.75
58	6.06	3.67
59	3.37	-0.24
60	1.68	2.15