The file Excel Project Data Download Excel Project Datacontains daily historical stock excess returns for the PROCTER & GAMBLE CO $($PG$)$ and the excess return on the market portfolio $($M$).$ Answer the questions in this assignment using the entire sample period you have data for.

Flag question: Question $1$

Question $15$ pts

Estimate the Single Index Model for the PG stock. What is the R$-$square of the regression?

Please report the full number with $2$ decimals. For example, a value of $24\mathrm{.}56\%$ should be reported as $24\mathrm{.}56.$

$6\mathrm{.}49$

Flag question: Question $2$

Question $25$ pts

Continuation of Question $1.$

What is the estimated alpha of the PG stock? Please report the number with $5$ decimals.

$0\mathrm{.}0002$

Flag question: Question $3$

Question $35$ pts

Continuation of Questions $1$ and $2.$

What is the estimated beta of the PG stock? Please report the number with $5$ decimals.

$0\mathrm{.}3427$

Flag question: Question $4$

Question $45$ pts

Continuation of the previous Questions.

If the market risk premium is $0,$ what is the expected excess return of the PG stock? Please report the number with $5$ decimals.

Flag question: Question $5$

Question $55$ pts

Continuation of the previous Questions.

If the market excess return increases by $3$ units, what is the expected change in the excess return of the PG stock?

Please report the number with $5$ decimals.

Flag question: Question $6$

Question $65$ pts

Continuation of the previous Questions.

Is the estimated beta of the PG stock significantly different from $0?$

Group of answer choices

Yes

No

Flag question: Question $7$

Question $75$ pts

Continuation of the previous Questions.

Is the estimated beta of the PG stock significantly different from $1?$

Group of answer choices

Yes

No

Flag question: Question $8$

Question $85$ pts

Continuation of the previous Questions.

Under the Capital Asset Pricing framework, would the PG stock be considered mispriced?

$($Hint: you could check whether the estimated alpha is significantly different from $0.)$

Group of answer choices

Yes

No