Monthly Returns
Date	SPY Return	TSLA Return	Risk-Free Rate
11/1/16	0.01429	0.12825	0.0016
12/1/16	0.02389	0.17895	0.0016
1/1/17	0.03929	-0.00770	0.0021
2/1/17	-0.00309	0.11324	0.0021
3/1/17	0.01432	0.12853	0.0024
4/1/17	0.01411	0.08578	0.0023
5/1/17	0.00149	0.06041	0.0024
6/1/17	0.02553	-0.10547	0.003
7/1/17	0.00292	0.10026	0.0029
8/1/17	0.01511	-0.04158	0.0027
9/1/17	0.02864	-0.02806	0.0031
10/1/17	0.03057	-0.06841	0.0032
11/1/17	0.00698	0.00809	0.0035
12/1/17	0.06176	0.13798	0.0034
1/1/18	-0.03636	-0.03175	0.0037
2/1/18	-0.03129	-0.22425	0.0036
3/1/18	0.00919	0.10435	0.0043
4/1/18	0.02431	-0.03120	0.004
5/1/18	0.00126	0.20447	0.004
6/1/18	0.04170	-0.13066	0.0042
7/1/18	0.03192	0.01181	0.0041
8/1/18	0.00141	-0.12229	0.0041
9/1/18	-0.06489	0.27401	0.0042
10/1/18	0.01855	0.03901	0.004
11/1/18	-0.09334	-0.05045	0.0044
12/1/18	0.08637	-0.07746	0.0038
1/1/19	0.03242	0.04189	0.0043
2/1/19	0.01364	-0.12511	0.0044
3/1/19	0.04544	-0.14711	0.0041
4/1/19	-0.06377	-0.22427	0.004
5/1/19	0.06441	0.20685	0.004
6/1/19	0.02006	0.08122	0.0042
7/1/19	-0.01674	-0.06622	0.0032
8/1/19	0.01477	0.06764	0.0032
9/1/19	0.02682	0.30743	0.0034
10/1/19	0.03620	0.04769	0.0027
11/1/19	0.02402	0.26790	0.0021
12/1/19	0.00451	0.55516	0.0013
1/1/20	-0.07917	0.02678	0.0017
2/1/20	-0.12999	-0.21556	0.0017
3/1/20	0.13361	0.49214	0.0017
4/1/20	0.04765	0.06794	0.0017
5/1/20	0.01328	0.29319	0.0015
6/1/20	0.06355	0.32501	0.0012
7/1/20	0.06980	0.74145	0.0015
8/1/20	-0.04128	-0.13909	0.0008
9/1/20	-0.02103	-0.09550	0.0002
10/1/20	0.10878	0.46274	0.0009
11/1/20	0.03265	0.24325	0
12/1/20	-0.00597	0.12451	0.0001
1/1/21	0.02781	-0.14874	0.0001
2/1/21	0.04199	-0.01121	0.0001
3/1/21	0.05636	0.06215	0
4/1/21	0.00657	-0.11871	0
5/1/21	0.01909	0.08714	0.0001
6/1/21	0.02776	0.01103	0.0001
7/1/21	0.02976	0.07061	0
8/1/21	-0.04965	0.05404	0
9/1/21	0.06494	0.32158	0
10/1/21	0.02917	0.06343	0

The CAPM Method for the expected return

Given: monthly returns for the SPY, Tesla, and the three-month treasury (risk-free rate).

1) Run the regression to estimate the beta of Tesla and report the ouput in a new worksheet.

2)Draw the security characteristic line equation (SCL) using the regression output and write the SCL.

3) Suppose that the risk free rate is 0.23% and the market expected return is 1.52%.

Using the beta from Question 1), figure out the expected return for Tesla based on the CAPM framework.