Consider the following information about the share price of Orbison Sunglasses and the S&P 500. Assume the S&P 500 represents the market portfolio.

Year	Orbison Sunglasses share price ($)	S&P 500
2015	10	400
2016	15	440
2017	18	528
2018	16. 2	528

• What are the average return and standard deviations of returns for Orbison Sunglasses and the market portfolio over the period 2015-2018 (hint: calculate the returns first)?
• Assume the current risk-free rate is 5% and Orbison Sunglasses has a beta of 1.5 with the market portfolio. Assume a market risk premium of 4%. What is the expected share price for Orbison Sunglasses in 2019?
• Suppose 2015 is an unexpectedly sunny year, boosting the share price for Orbison Sunglasses to 24.3. What is Orbison Sunglasses alpha (actual return in excess of expected return) in 2019?
• Should you use your estimate for alpha that you obtained in question (c) to calculate expectations for future returns? Why (not)?