A capital asset pricing model (CAPM) describes the relationship between the excess return of an individual asset (in decimal place) and the market excess return (in decimal place). We will construct a simple linear regression of the monthly excess return of Tesla (?)on the monthly excess market return (?)from the last year. The two excess returns are listed in the excel file.

a. Plot the scatter diagram with a least-squares line.

b. What is the 90% confidence interval for?1?

c. Interpret the 90% confidence interval for?1.

d. An analyst says that the performance of the asset matches with the market expectation if?0= 0. If?0> 0, it means the asset outperforms the market expectation. Otherwise, it underperforms. Does Tesla outperform the market expectation at the significance level of 0.1?

e. The analyst says that the asset is aggressive if?1> 1. Is Tesla aggressive at the significance level of 0.05? Explain your answer briefly.