Question: Using the capm.xls to estimate a CAPM equation for the General Electric, Microsoft and Oracle stocks. The data includes monthly stock prices of four companies

Using the capm.xls to estimate a CAPM equation for the General Electric, Microsoft and Oracle stocks. The data includes monthly stock prices of four companies (Ford, General Electric, Microsoft and Oracle), along with index values for the S&P500 (SANDP) and three-month US-Treasury bill (USTB3M).

a.Please provide the excel results and test whether the investment in Oracle has earned a return adequate for the risk taken or not at 5% level of significance using rejection region. (10 points)

b.Please provide the excel results and test whether the investment in Oracle has earned a return adequate for the risk taken or not at 5% level of significance using p-value. (10 points)

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