From the finance theory, the Capital Asset pricing Model postulates a relationship between the returns on a particular stock and the market return according to the following model: E(Rit -rft) =BiE(Rmt -rft) + Ut

Where Rit = Return on asset i

Rmt = Return on the market as a whole

rft = The risk free rate of return

An assets risk premium is the excess of its return over the risk-free rate, therefore this equation relates the risk premium of asset i to the risk premium on the market. Assets having risk premia that fluctuate less than one-for-one with the market are called defensive assets, and those whose risk premia fluctuate more than one-for-one with the market are called aggressive assets.

. Use the data provided to you here below to estimate the CAPM model for Xerox, including an intercept. i.e. a model specified as follows:

E(Rit -rft) = B0 + B1E(Rmt - rft) + Ut