fin4502- The stock is Proctor and Gamble(PG)

Part 3 (IN EXCEL FILE): The stock is Proctor and Gamble(PG)

Step 1. Collect adjusted stock return (Ri) and the S&P 500 Composite Index return (Rm) from Yahoo Finance (use data more than five years), collect three-month T-bill rate () from Economic data-FRED ® @ http://research.stlouisfed.org/fred2/categories/116 (TB3MS is an annualized time series and you have to divided the series by 12 to generate monthly T-bill rate). Construct excess returns for stock (Ri – Rf) and market (Rm – Rf). Use monthly frequency data for 10 years (ending on December 31, 2015).

Step 2. Run the regression of excess stock return on excess market return in Excel (click on Tools in the menu bar, choose Data Analysis and then double lick regression. If it does not show Data Analysis in the drop-down list, click Add-ins on the drop-down list. When the Add-Ins dialog box pops up, click the box in front of Analysis ToolPak, and then click the OK button. The Data Analysis add-in will be installed. Report your results: interpret the coefficients, t-statistics and R².