Question: 1. a. Please estimate and plot the SML that can be constructed using the data contained inSML_data.xls. The data file contains data on six individual

1. a. Please estimate and plot the SML that can be

1. a. Please estimate and plot the SML that can be constructed using the data contained inSML_data.xls. The data file contains data on six individual stocks' excess returns for a period. Italso contains excess return data for a market index (SP500) for the same period. Does the estimated SML indicate statistically significant risk return trade-off relationship? Explain. Please present the related regression table.[9 Marks]

b. What is the firm-specific risk exposure of AMR? Do the necessary estimation and make your conclusion. Please provide detailed explanation. Please present the related regression table.[5 Marks]

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