For the most recent ten-year period, collect from Bloomberg end-of-year values of FTSE100 (UKX) index and end-of-year prices of any two of the member stocks of the FTSE100 (UKX) index.
Assume that the FTSE100 (UKX) index represents the market portfolio. Compute the excess returns of each of the two stocks that you have selected against that of the FTSE100 (UKX) index.
Use the relevant short-term Treasury bill rate as the risk-free rate in the capital asset pricing model (CAPM). Using the CAPM framework and regression analysis, provide the estimates of both systematic risk and theoretical return for the selected two stocks. Discuss the results.
Explain which of the two stocks has more systematic risk and why.

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