Assume that the Single Index Model holds in practice.

Monthly excess returns Ri=ri-rf are presented below for each of three stocks and the S&P 500 index for a 6-month period.

You are also given means (ERi), variances (VarRi), and covariances between the stock and the market COVRi,RM.

The risk free rate of interest, rf, is 0.5%

MONTH	BRK(A)	DOV(B)	WMT(C)	S&P500
1	-0.1676	-0.0800	-0.0327	0.896
2	0.1064	-0.0033	-0.0389	-0.0933
3	-0.0729	-0.0577	-0.0055	0.0375
4	-0.1154	-0.624	-0.0897	0.1014
5	0.0627	0.0175	0.0617	-0.0839
6	-0.0350	-0.0094	-0.0108	0.053
Mean	-0.0370	-0.0325	-0.0193	0.0128
Variance	0.010997	0.001535	0.002470	0.007024
Covariance	-0.008537	-0.002914	-0.002515	0.007024

Residuals For assets

Observation	Residuals^2 (asset a)	Residuals^2 (asset b)	Residuals^2 (asset c)
1	0.0013870743	0.00024316	0.0002012
2	0.0002099016	0.00021633	0.00331297
3	0.0000340277	0.00022093	0.00051408
4	0.0008584033	0.00004805	0.00149587
5	0.0003201010	0.00009874	0.00215358
6	0.0002952085	0.00080073	0.00016823

Compute the alpaha, beta, standard error, expected value of excess returns, treynor ratio, and optimal C*