Period Return on Stock A (X) Market return(Y) x-x/ y-y/ (x-x/)(y-y/)

1 25 15 9.5 3.125 29.6875

2 13 14 -2.5 2.125 -5.3125
3 17 13 1.5 1.125 1.6875
4 15 10 -0.5 -1.875 0.9375
5 14 9 -1.5 -2.875 4.3125
6 18 13 2.5 1.125 2.8125
7 16 14 0.5 2.125 1.0625
8 6 7 -9.5 -4.875 46.3125
124 95

N=8
x/ 15.5 Cov 11.64
Y/ 11.875
beta 0.20
(Y-Y/)^2
9.765625
4.515625
1.265625
3.515625
8.265625
1.265625
4.515625
23.76563
56.875

Alpha 13.06907
 P X1 Y1 ER-1 ER-2 R-ER1 R-ER2 (R-ER1)^2
1 0.2 18 8 3.6 1.6 6 -6.8 36
2 0.2 16 13 3.2 2.6 4 -1.8 16
3 0.2 12 19 2.4 3.8 0 4.2 0
4 0.2 8 21 1.6 4.2 -4 6.2 16
5 0.2 6 13 1.2 2.6 -6 -1.8 36
60 74 12 14.8

X/ 12
Y/ 14.8
SD 4.561 4.665
Cov -12.4
Cor -0.582855
X Y

(R-ER2)^2 P(R-ER1)^2 P(R-ER2)^2 Cov st X&Y

46.24 7.2 9.248 -8.16
3.24 3.2 0.648 -1.44
17.64 0 3.528 0
38.44 3.2 7.688 -4.96
3.24 7.2 0.648 2.16
20.8 21.76 COV(X,Y) -12.4