Question: Using the template Excel Index Model posted on Canvas, find out Microsofts alpha, beta, and the fraction of its variance attributed to market risk. find

Using the template Excel Index Model posted on Canvas, find out Microsofts alpha, beta, and the fraction of its variance attributed to market risk. find R_M, R_IBM, R_MSFT? SHOW FORMULAS PLEASE.

Year Month r_f r_M R_M r_IBM R_IBM r_MSFT R_MSFT
1996 1 0.0048 0.0449 -0.0271 0.0277
1996 2 0.0048 0.0517 0.0554 0.0650
1996 3 0.0049 -0.0166 -0.0840 -0.0484
1996 4 0.0051 0.0110 0.0534 -0.0354
1996 5 0.0056 0.0004 0.0020 0.0642
1996 6 0.0056 0.0515 0.1322 0.1552
1996 7 0.0059 -0.0073 -0.0128 -0.1119
1996 8 0.0062 -0.0280 -0.1046 -0.1597
1996 9 0.0062 0.0372 0.0348 0.0450
1996 10 0.0063 0.0176 0.0628 -0.0622
1996 11 0.0067 -0.0164 -0.0247 -0.0357
1996 12 0.0069 0.0211 0.0285 0.1270
1997 1 0.0072 0.0661 0.0718 0.1197
]

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