Question: The Table below presents the excess return on Fund A and the excess return on market index. Year Excess Return on Market index 1 2

The Table below presents the excess return on Fund A and

The Table below presents the excess return on Fund A and the excess return on market index. Year Excess Return on Market index 1 2 WN 3 4 5 Excess return on Fund A 17.8 39 12.8 24.2 17.2 Construct a relationship between them. Estimate the model. 13.7 23.2 6.9 16.8 12.3 b. c. Comment on why the estimated simple linear regression model can be considered same as the equation of a straight line

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