Question
Use the uploaded price data to answer the questions that follow. Assume that the S&P 500 is the proxy for the market portfolio. A: Price
Use the uploaded price data to answer the questions that follow. Assume that the S&P 500 is the proxy for the market portfolio.
A: Price data for the American Funds Growth Fund of America (ticker symbol AGTHX) and S&P 500 is given in the Excel Upload file. Each month, calculate the excess returns for both AGTHX and the S&P 500.
B: Using the excess returns, estimate the fund's alpha and beta (assume that the CAPM is the appropriate benchmark model). What is the 95% confidence interval for beta?
C: Does AGTHX significantly outperform, significantly underperform, or perform as expected (again using CAPM as the benchmark model)? Why?
please show calculations in excel
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