a) Determine what the average returns and standard deviations of returns per annum based on the historical data are for the two stocks and NZX50 index. (6 marks)

b) Use regression analysis to evaluate the market risk (beta) and the intercept (alpha) of the two stocks. Also, report the beta and alpha for the NZX50 index. (5 marks)

c) Give an interpretation of your findings from the regression analysis, particularly the estimated beta and alpha values of the two stocks and their implications on the stock price. (4 marks)

Name	SCL price	SAN price	NZX50 index	90 DAY BANK BILL (RFR) - % p.a.
Jan-15	1.43	4.80	5568.28	3.67
Feb-15	1.52	4.95	5756.68	3.64
Mar-15	1.55	4.95	5892.67	3.63
Apr-15	1.57	4.85	5835.58	3.64
May-15	1.63	4.86	5797.40	3.62
Jun-15	1.73	5.10	5844.95	3.47
Jul-15	1.70	5.20	5794.35	3.24
Aug-15	2.00	5.07	5957.85	3.06
Sep-15	2.00	5.01	5654.99	2.89
Oct-15	2.02	4.90	5585.43	2.83
Nov-15	2.11	4.95	5983.84	2.95
Dec-15	2.23	5.70	6150.68	2.85
Jan-16	2.46	5.60	6324.26	2.75
Feb-16	2.28	5.70	6174.49	2.69
Mar-16	2.35	6.40	6280.90	2.56
Apr-16	3.08	6.20	6708.02	2.33
May-16	3.35	6.00	6791.82	2.38
Jun-16	3.31	5.80	7022.40	2.42
Jul-16	2.98	5.56	6926.23	2.42
Aug-16	3.27	5.62	7356.63	2.26
Sep-16	3.21	5.85	7423.19	2.23
Oct-16	3.20	6.38	7372.49	2.20
Nov-16	3.10	6.26	6930.49	2.13
Dec-16	3.47	6.75	6932.74	2.04
Jan-17	3.45	6.78	6881.22	2.00
Feb-17	3.41	7.00	7055.50	2.02
Mar-17	3.45	7.50	7148.78	2.00
Apr-17	3.43	7.32	7225.01	2.00
May-17	3.35	7.27	7382.22	1.98
Jun-17	3.33	7.15	7450.90	1.95
Jul-17	3.34	6.95	7588.43	1.99
Aug-17	3.40	7.25	7729.44	1.96
Sep-17	3.39	7.36	7821.98	1.96
Oct-17	3.70	7.90	7928.89	1.94
Nov-17	3.78	7.90	8053.81	1.95
Dec-17	3.87	8.07	8188.83	1.91
Jan-18	4.78	8.30	8398.08	1.88
Feb-18	4.78	7.96	8383.87	1.89
Mar-18	4.49	7.70	8342.71	1.92
Apr-18	4.51	7.43	8319.07	1.97
May-18	4.51	7.60	8435.97	2.03
Jun-18	4.66	7.70	8636.16	2.01
Jul-18	4.63	7.70	8942.47	1.98
Aug-18	4.61	7.62	8859.92	1.91
Sep-18	4.81	7.70	9257.29	1.90
Oct-18	4.90	7.95	9327.27	1.90
Nov-18	4.63	7.39	8843.83	1.94
Dec-18	4.47	6.70	8876.09	1.97
Jan-19	4.50	6.60	8811.27	1.97
Feb-19	4.40	6.68	8999.17	1.93
Mar-19	4.74	6.60	9351.68	1.89
Apr-19	4.98	6.97	9853.91	1.84
May-19	4.98	6.83	9966.42	1.79
Jun-19	4.75	6.75	10117.99	1.64
Jul-19	4.67	6.81	10464.53	1.62
Aug-19	4.55	6.71	10860.82	1.46
Sep-19	4.77	6.75	10800.00	1.18
Oct-19	5.00	6.80	10996.99	1.09
Nov-19	5.21	7.05	10761.69	1.12
Dec-19	5.19	7.80	11301.98	1.22
Jan-20	5.01	7.95	11491.90	1.29
Feb-20	4.63	7.56	11550.16	1.25
Mar-20	4.10	6.90	11103.43	0.90
Apr-20	4.43	6.59	9926.08	0.49
May-20	4.88	7.00	10449.01	0.26
Jun-20	4.92	6.85	10882.41	0.26
Jul-20	4.97	6.35	11350.27	0.30
Aug-20	4.93	6.49	11666.09	0.30