Question
In the excel file, I have provided the information on the historical excess return on the market index and risk-free rate. I've also provided the
In the excel file, I have provided the information on the historical excess return on the market index and risk-free rate. I've also provided the historical excess return data for three securities. Given these information, you have to answer the questions in each worksheet. Questions 1, 2 and 3 are about CAPM and you have to complete the table. Worksheets Q1, Q2, and Q3 correspond to security 1, 2, and 3. Please copy and show your regression output in the corresponding worksheet. For question 4 (in worksheet Q4), you have to justify the level of idiosyncratic risk associated with each of these three securities (a lot, a little, or some). Please use excel to answer the questions and upload the excel file. Answer each question in its corresponding worksheet.
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