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please show how to do this in excel, thank you! 7-13 Consider the data contained in the table below, which lists 30 mont excess returns
please show how to do this in excel, thank you!
7-13 Consider the data contained in the table below, which lists 30 mont excess returns to two different actively managed stock portfolios (A and B) and three different common risk factors (1, 2, and 3). Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Portfolio A 1.11% 7.60 5.06 1.15 -2.07 4.17 -0,72 -15.43 6.05 7.75 7.81 9.52 5.35 -3.19 5.31 2.43 -2.90 6.48 -3.40 -1.18 -1.55 6.10 1.96 7.27 4.81 1.05 Portfolio B 0.00% 6.55 5.95 0.38 -1.56 2.44 -2.39 -15.41 4.12 6.69 5.60 4.93 2.79 -0.62 2.64 7.35 0.10 3.57 -0.59 -3.98 0.18 5.29 2.34 7.08 -2.70 -2.12 Factor 1 0.02% 6.89 4.82 0.58 -2.86 2.88 -2.66 -16.15 6.00 7.08 5.76 5.93 3.56 -4.22 3.34 4.39 -2.43 4.77 -3.43 -1.27 -2.76 5.83 3.18 7.73 -4.47 2.48 Factor 2 -1.01% 0.19 -1.53 0.46 -3.58 -3.45 -4.45 -5.84 0.03 -3.31 1.26 -0.36 1.20 -5.59 -3.75 2.87 3.49 3.37 2.00 -1.19 3.33 -6.59 7.77 6.88 4.03 21.52 Factor 3 -1.75% -1.19 1.97 0.26 4,30 -1.50 -1.83 5.62 -3.74 -2.92 -3.70 -4.89 -6.06 1.68 -3.04 2.83 3.03 -4.40 0.80 -1.19 -3.17 -3.23 -8.12 -9.15 -0.26 -11.96
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