Part A: Calculate the followings statistics for stock, market index, and T$-$bills during period $1927-2016$ by using the Excel functions.

$1.$ Average return

$2.$ Variance

$3.$ Standard deviation

Part B: Calculate the following statistics for each subperiod for stock, market index and T$-$bills by using the Excel functions.

$1.$ For $1927-2016$ period, average return, standard deviation, correlation $,$ and Beta

$2.$ For $1927-1956$ period, average return, standard deviation, correlation, and Beta

$3.$ For $1957-1987$ period, average return, standard deviation, correlation, and Beta

$4.$ For $1988-2016$ period, average return, standard deviation, correlation, and Beta

Part C: Calculate the expected rate of return from CAPM for each period by using the followings that you calculated in Part B$.$

$1.$ Market average return for each period

$2.$ T$-$bills average return for each period

$3.$ Beta for each period

Part D: Based on your calculation in Part A$,$ B$,$ and C$,$ answer the following questions.

$1.$ How stable Beta for each subperiod? Explain?

$2.$ If it does, why expected rates of return from CAPM changes significantly from period to period? Why?

Part E: Summary

Summarize what you learned from the history based on your analysis?