#2. The Single Index Model (SIM) of Finance states that the rate of return on any security is a linear function of the rate of return on the S&P Index plus an error term that is normally distributed. That is, the SIM is the statement ror_security = b₀ + b₁*ror_S&P + e.

#2.1 Suppose we have a security where b₀ = 0.029, b₁= 0.373, e is normally distributed with a mean of 0 and a standard deviation of 0.039, and ror_S&P = 0.074. Fill in the five empty cells in the table below. Show the values to three decimal places. Use the random numbers that are given in the table.

Observation	rorsecurity	random numbers for e
1		0.050
2		-0.091
3		0.017
4		-0.009
5		-0.003

(This is a live table, and can be copied and pasted into an Excel spreadsheet.)

#2.2 The Excel function that generated the random numbers for e is