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a. calculate monthly return for the stock and market index. Then calculate excess returns = return risk-free rate. b. regress the excess return of the
a. calculate monthly return for the stock and market index. Then calculate excess returns = return risk-free rate.
b. regress the excess return of the stock on the excess return of the market index to estimate beta.
c. calculate risk-free rate using average of the annual 3-Month Treasury Bill interest rates over the estimation period.
thank you :))
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