The second column in Table 12.2 shows the monthly return on the British FTSE 100 index from January 2015 through July 2017. The remaining columns show returns on the stocks of two firmsExecutive Cheese and Paddington Beer. Both firms announced their earnings in July 2017.

The following is Table 12.2:

Month	Market Return (%)	Executive Cheese Return (%)	Paddington Beer Return (%)
Jan-15	2.8	3.6	1.6
Feb-15	2.9	7	1.5
Mar-15	-2.5	-2.2	-0.7
Apr-15	2.8	3.1	3
May-15	0.3	0.2	0.1
Jun-15	-3.9	-6.5	1.1
Jul-15	-0.2	0.1	0.6
Aug-15	-6.7	-9.8	-4.6
Sep-15	-3	-7.2	-5.3
Oct-15	4.9	5.8	6.1
Nov-15	-0.1	0.2	0.1
Dec-15	-1.8	-1	-1.2
Jan-16	-2.5	-3.1	0.6
Feb-16	0.2	0.3	1.7
Mar-16	1.3	1.7	2.1
Apr-16	1.1	1.1	3
May-16	-0.2	0.1	1.6
Jun-16	4.4	7.4	2.8
Jul-16	3.4	4	0.9
Aug-16	0.8	1.2	1
Sep-16	1.7	5.1	1.3
Oct-16	0.8	3.7	-1.6
Nov-16	-2.4	-2.7	-1.2
Dec-16	5.3	10.7	1.8
Jan-17	-0.6	-0.4	-0.7
Feb-17	2.3	2.8	2.4
Mar-17	0.8	0.7	0.8
Apr-17	-1.6	-1	-1.2
May-17	4.4	6.2	-3.7
Jun-17	-2.8	-3.2	-1.3
Jul-17	2.7	3	2.9

1. Use Excel to run a regression using returns from January 2015 to June 2017 to find the alpha and beta for each stock. Show you regression results and attach them to your answer (you may copy and paste Excel images).
2. Calculate the abnormal return of each of the 2 stocks during the month of the earnings announcement (i.e., you need not calculate the average abnormal return of the 2 stocks on the event month).
3. The earnings of one of these stocks slightly disappointed investors and the earnings of the other were slightly better than expected. Which was which?