Use Yahoo Finance (finance.yahoo.com) to download the historical prices for Caterpillar (CAT) and (SPY). Download adjusted closing prices at a daily frequency for the period from 3/9/2015 to 3/9/2017. For the purposes of this assignment and given the recent interest rate environment, you may assume a riskfree rate of 0% when running the regression. However, note that this will not always be the case, and normally we would subtract the risk-free rate from each return. Please staple your regression output (reduced to one single printed page) to this document to turn in.

1. Use a CAPM single-index framework to find the beta for CAT. What information does this beta provide you as an investor? Interpret the coefficient in terms of both magnitude and statistical significance.