1. Use the basic table below and excel:

Date	Fund risk premium (numbers below are returns in %)	Market risk premium (numbers below are returns in %)
1	5.34	6.31
2	4.63	2
3	-4.87	-7.89
4	-5.53	-5.56
5	5.95	6.93
6	-5.2	-4.77
7	9.39	9.54
8	2.61	3.88
9	3.4	0.6
10	5.36	6.82

1. What is the alpha and beta using the ten month data above
2. Explain what alpha and beta is
   1. Is the fund manager outperforming or underperforming the chosen index?
   2. The beta tells you the fund manager has a risky strategy or conservative strategy?
3. Talk about the issue of using market risk premium for this analysis, why small cap index like Russell 2000 might be more appropriate?
4. What are other issues with our analysis above? Could our results could be biased or wrong? explain