Data Date MSFT Spy 11 1 17 79 752716 246 8687 12 1 17 81 457863 248 592 1 1 18 90 475929 263 9447 2 1 18 89 295082 254 3476 3 1 18 87 322685 246 389 4 1 18 89 475365 248 6543 5 1 18 94 565292 254 6988 6 1 18 94 754166 255 0185 7 1 18 101 932076 265 6535 8 1 18 107 937698 274 1332 9 1 18 110 320847 274 5204 10 1 18 103 028488 256 7066 11 1 18 106 964043 261 4684 12 1 18 98 39727 237 0621 1 1 19 101 167915 257 5378 2 1 19 108 530518 265 8862 3 1 19 114 743874 269 5117 4 1 19 127 060791 281 7575 5 1 19 120 328316 263 7895 6 1 19 130 812164 280 78 7 1 19 133 067902 286 4116 8 1 19 134 620514 281 6161 9 1 19 136 215118 285 776 10 1 19 140 467209 293 4419 11 1 19 148 315079 304 064 12 1 19 155 032852 311 3678 1 1 20 167 350937 312 7723 2 1 20 159 269989 288 0115 3 1 20 155 466171 250 5736 4 1 20 176 660294 284 0529 5 1 20 180 642792 297 5867 6 1 20 201 173264 301 5373 7 1 20 202 656036 320 7006 8 1 20 222 94043 343 0844 9 1 20 208 417557 328 9214 10 1 20 200 629028 322 0041 11 1 20 212 123566 357 0307 12 1 20 220 97464 368 6865 1 1 21 230 452652 366 485 2 1 21 230 869934 376 6753 3 1 21 234 777374 392 4906 4 1 21 251 118271 414 6109 5 1 21 248 628799 417 3333 6 1 21 270 382385 425 3016 7 1 21 284 365601 437 1097 8 1 21 301 303192 450 118 9 1 21 281 920013 427 7696 Quiz (2) The file labeled dataq1 xlsx contains the monthly prices of Microsoft and the Spy (ETF mimics the movement in SP500) The data run from 2017 11 to 2021 09 1 Convert the prices of the two financial assets to monthly returns in percentages 2 Utilize CAPM to calculate Beta Microsoft Make sure to account for heteroscedasticity 3 Test whether Beta is statistically different from one (t, P Value, and Confidence interval) 4 Calculate the total risk, systematic risk, and unique risk (For this exercise, you are required to write all the commands in RATS) Quiz (2) The file labeled dataq1 xlsx contains the monthly prices of Microsoft and the Spy (ETF mimics the movement in SP500) The data run from 2017 11 to 2021 09 1 Convert the prices of the two financial assets to monthly returns in percentages 2 Utilize CAPM to calculate Beta Microsoft Make sure to account for heteroscedasticity 3 Test whether Beta is statistically different from one (t, P Value, and Confidence interval) 4 Calculate the total risk, systematic risk, and unique risk (For this exercise, you are required to write all the commands in RATS)

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Data: Date MSFT Spy 11/1/17 79.752716 246.8687 12/1/17 81.457863 248.592 1/1/18 90.475929 263.9447 2/1/18 89.295082 254.3476 3/1/18 87.322685 246.389 4/1/18 89.475365 248.6543 5/1/18 94.565292 254.6988

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Data:

Date	MSFT	Spy
11/1/17	79.752716	246.8687
12/1/17	81.457863	248.592
1/1/18	90.475929	263.9447
2/1/18	89.295082	254.3476
3/1/18	87.322685	246.389
4/1/18	89.475365	248.6543
5/1/18	94.565292	254.6988
6/1/18	94.754166	255.0185
7/1/18	101.932076	265.6535
8/1/18	107.937698	274.1332
9/1/18	110.320847	274.5204
10/1/18	103.028488	256.7066
11/1/18	106.964043	261.4684
12/1/18	98.39727	237.0621
1/1/19	101.167915	257.5378
2/1/19	108.530518	265.8862
3/1/19	114.743874	269.5117
4/1/19	127.060791	281.7575
5/1/19	120.328316	263.7895
6/1/19	130.812164	280.78
7/1/19	133.067902	286.4116
8/1/19	134.620514	281.6161
9/1/19	136.215118	285.776
10/1/19	140.467209	293.4419
11/1/19	148.315079	304.064
12/1/19	155.032852	311.3678
1/1/20	167.350937	312.7723
2/1/20	159.269989	288.0115
3/1/20	155.466171	250.5736
4/1/20	176.660294	284.0529
5/1/20	180.642792	297.5867
6/1/20	201.173264	301.5373
7/1/20	202.656036	320.7006
8/1/20	222.94043	343.0844
9/1/20	208.417557	328.9214
10/1/20	200.629028	322.0041
11/1/20	212.123566	357.0307
12/1/20	220.97464	368.6865
1/1/21	230.452652	366.485
2/1/21	230.869934	376.6753
3/1/21	234.777374	392.4906
4/1/21	251.118271	414.6109
5/1/21	248.628799	417.3333
6/1/21	270.382385	425.3016
7/1/21	284.365601	437.1097
8/1/21	301.303192	450.118
9/1/21	281.920013	427.7696

Quiz (2) The file labeled dataq1.xlsx contains the monthly prices of Microsoft and the Spy (ETF mimics the movement in SP500). The data run from 2017:11 to 2021:09. 1. Convert the prices of the two financial assets to monthly returns in percentages. 2. Utilize CAPM to calculate Beta Microsoft. Make sure to account for heteroscedasticity. 3. Test whether Beta is statistically different from one (t, P-Value, and Confidence interval) 4. Calculate the total risk, systematic risk, and unique risk. (For this exercise, you are required to write all the commands in RATS) Quiz (2) The file labeled dataq1.xlsx contains the monthly prices of Microsoft and the Spy (ETF mimics the movement in SP500). The data run from 2017:11 to 2021:09. 1. Convert the prices of the two financial assets to monthly returns in percentages. 2. Utilize CAPM to calculate Beta Microsoft. Make sure to account for heteroscedasticity. 3. Test whether Beta is statistically different from one (t, P-Value, and Confidence interval) 4. Calculate the total risk, systematic risk, and unique risk. (For this exercise, you are required to write all the commands in RATS)