3 4 Excess return Month Market Stock A 1 -5.73% -2.27% 2 0.05% 0.22% 3 7.05% 8.36% 4 1.16% -3.44% 5 1.42% -0.46% 6 0.28% 2.41% 7 3.87% 3.76% 8 0.27% -0.47% 9 0.29% -1.76% 10 -2.17% 0.18% 11 4.04% -4.02% 12 1.87% 2.74% 13 2.21% 6.50% 14 3.25% 0.93% 15 0.20% 2.02% 16 0.95% 1.66% 17 0.92% 5.37% 18 0.95% 7.12% 19 2.02% 2.20% 20 0.15% -0.64% 21 2.37% 4.33% 22 1.92% 2.15% 23 2.72% 0.34% 24 1.21% 0.23% Use the monthly excess returns data in the attached worksheet (MT Practice data.xlsx ) to answer this question. Column B presents the excess returns for the market and Column C presents the excess returns for stock A. Present your answers in a worksheet and upload the worksheet. 1. Compute the Sharpe ratio for the market. 2. Assuming market returns are normally distributed, what is the probability that market returns will be less than -1% in a particular month? 3. Compute market model alpha and beta estimates for Stock A