(a) Compute the monthly excess returns on Exxon, General Electric, Gold, IBM, Microsft and Walmart. Be particularly carefully when computing the correct risk free rate to use.
(b) Estimate the CAPM for each asset and interpret the estimated beta risk.
(c) For each asset, test the restrictions \(\beta_{0}=0\) and \(\beta_{1}=1\) individually and then test these restrictions jointly. Provide an interpretation of the CAPM if the restriction \(\beta_{0}=0\) is valid.