IV$.$ Question $4[$Regression Excercise$]$

Use monthly total returns $($File: return$\_$data.xlsx$)$ for the S&P $500$ index, Xcel Energy $($XEL$),$ NVIDIA $($NVDA$),$ Bank of America $($BAC$),$ and Tesco PLC $($TSCO$)$ from July $2012$ through June $2017.$

a$)$ Create an XY $($Scatter$)$ plot to show the relationship between the returns on each individual stock and the S&P $500($SPY$).$ Estimate the slope of a regression equation of this data.

b$)$ How to interprete the coefficients you produced? What is the economic intuition behind those numbers?

c$)$ Add a linear trend line to each chart, and place the equation and $R^2$ on each chart. How much of the variability in each stock's returns can be explained by variability in the S&P

d$)$ Repeat part a$)$ and c$)$ with an equally weighted portfolio that includes all of these stocks. Use the arithmetic average of the monthly returns of each stock as the expected return in your portfolio. Do you see any improvements in the $R-$square?

JUST ANSWER LETTER D$!$