Class, For Module 8 Problem exercise #3, please review chapter 13 exercise questions, Q#2, Q#3, Q#4 and Q#5 to complete the assignment. I have included the excel template here for your reference. Please make sure to fill the template to complete the activity. For your understanding and reference, I am including assignment question here.

1. Fill in template file below:

3. Perform the second-pass regression: Regress the monthly average returns on the betas of the assets. Does this confirm that the SP500 is efficient?

4. Compute the variance-covariance matrix for the 10 stocks. Using the monthly average returns and a monthly risk-free interest rate of 0.20%, compute an efficient portfolio. Here is the template:

5. Using the efficient portfolio instead of the SP500:

a. Compute the monthly returns on the efficient portfolio. b. Regress the average monthly returns of the stocks on their betas with respect to the efficient portfolio. c. Explain your results considering Propositions 3 and 4 from Chapter 11

6. Below is template example to complete:

Please give step for calculation and not misses any steps. Thank You!