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    Estimating the Index Model using Historical Data

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    Estimating The Index Model Using Historical Data
    a. Using the "excess returns" for ABC, XYZ, and Market listed in the table near-by, compute the following statistical values:
    1. Average
    2. Variance
    3. Std Deviation
    4. Correlation (ABC:Market)
    5. Covariance (Covariance.P, ABC:Market)
    6. Beta

    I have attached the historical data.

    Excess Returns
    Week ABC XYZ MRK Rf ABC XYZ Market
    1 $59.92 -$19.84 $64.40 5.23 $54.69 -$25.07 $59.17
    2 $47.69 $27.67 $24.00 4.76 $42.93 $22.91 $19.24
    3 -$28.35 -$5.68 $9.15 6.22 -$34.57 -$11.90 $2.93
    4 -$13.92 -$45.00 -$35.57 3.78 -$17.70 -$48.78 -$39.35
    5 $64.98 $29.73 $11.59 4.43 $60.55 $25.30 $7.16
    6 $99.19 $29.00 $23.13 3.78 $95.41 $25.22 $19.35
    7 -$23.15 $61.77 $8.54 3.87 -$27.02 $57.90 $4.67
    8 $46.44 $24.31 $25.87 4.15 $42.29 $20.16 $21.72
    9 -$33.50 -$42.94 -$13.15 3.99 -$37.49 -$46.93 -$17.14
    10 -$38.82 $46.31 $20.21 4.01 -$42.83 $42.30 $16.20.

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    https://brainmass.com/business/business-math/estimating-index-model-using-historical-data-404228

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    The solution estimates the index model using historical data.

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