Question: (a) Compute the average excess return (E [Rfyt]0bsered) of each one of the 6 portfolios (use function av- erage(.) in excel) and then compute the

(a) Compute the average excess return (E [Rfyt]0bser"ed) of each one of the 6 portfolios (use function av- erage(.) in excel) and then compute the value premium in each industry (the value premium in each industry is simply the difference in average returns of the value portfolios minus the average returns of the growth portfolio in each industry, i.e. the difference of E [REJVElue minus E [RidGthhl In which industry is the value premium higher and in which industry is the value premium smaller? Does the value premium varies across industries? In order to answer this question, plug the numbers in two tables like the ones below, and then interpret the numbers (i.e. provide a brief answer to the questions I asked in the beginning of this question part a): C Goods Manuf High-Tech Value Growth Value Growth Value Growth E[Re ]Observed 1,: C Goods Manuf High-Tech Value Premium

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