Question: Download the Excel File provided with the assignment. I have provided you monthly price data from April 2016 to March 2021 (5 years of data)

Download the Excel File provided with the assignment. I have provided you monthly price data from April 2016 to March 2021 (5 years of data) on closing prices for the S&P500 index, Walmart Stock (WMT) and Target Stock (TGT).

Run two separate regressions between the returns on each stock vs the S&P500 stock to compute their respective betas (WMT and TGT).

(i) Report the graph that shows the regression line. Report the Beta for each stock and its T-Stat.

(ii) Discuss your findings which stock has a higher beta? Why?

(iii)If the CAPM applies and the risk-free rate is 3%, the market risk premium is 6%, what is the expected return for each stock?

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