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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.