The excel upload file contains monthly returns in excess of the risk-free rate for the S&P 500 (a proxy for the market portfolio) and Schlumberger Limited stock (SLB). The annualized risk-free rate is 2% and market risk premium (market return minus risk-free rate) is 5%. Using these data, do the following:

1.) Run a regression and provide the associated estimate of SLB's market beta. Additionally, provide a 95% confidence interval (range) for the beta parameter.

2.) Now that you have estimated beta (and already have the risk-free rate and market risk premium), use the CAPM to compute an estimate of SLB's expected (annual) stock return.

3.) Report the alpha for Schlumberger. Is the alpha statistically significant? Why? (Use a significance level of 5%, the significance level we used in class)

Month	S&P 500 monthly excess returns	SLB monthly excess returns
1	-2.58%	-11.09%
2	-1.46%	10.25%
3	0.12%	-9.18%
4	8.03%	9.75%
5	5.25%	14.71%
6	0.99%	-1.86%
7	1.70%	-5.47%
8	1.97%	9.66%
9	-1.17%	-2.32%
10	5.14%	-3.09%
11	1.01%	-0.17%
12	4.83%	15.67%
13	1.89%	11.08%
14	1.27%	5.50%
15	-1.42%	-1.08%
16	-1.99%	-8.78%
17	1.61%	-2.12%
18	1.73%	10.43%
19	-3.38%	1.17%
20	0.11%	-3.85%
21	0.87%	8.41%
22	1.13%	-6.84%
23	4.18%	3.99%
24	2.79%	2.12%
25	-2.47%	1.41%
26	1.86%	10.42%
27	-2.07%	-7.05%
28	-2.13%	-3.21%
29	2.94%	-0.30%
30	-0.10%	10.54%
31	3.49%	9.50%
32	-1.23%	2.66%
33	0.52%	-2.21%
34	-2.70%	6.99%
35	3.98%	5.01%
36	-0.52%	1.35%
37	2.03%	26.79%
38	0.19%	-10.44%
39	1.27%	9.21%
40	0.87%	8.46%
41	-3.45%	-5.69%
42	-0.14%	-0.92%
43	0.03%	2.23%
44	1.75%	-9.08%
45	2.26%	0.97%
46	2.69%	1.27%
47	1.56%	7.79%
48	0.93%	-8.30%
49	1.07%	0.12%
50	-2.40%	-1.24%
51	0.74%	9.15%
52	3.93%	6.22%
53	2.94%	4.92%
54	-1.86%	8.53%
55	-3.58%	10.50%
56	0.92%	1.70%
57	3.47%	8.12%
58	1.02%	-8.69%
59	-4.22%	-3.56%
60	-1.38%	5.06%
61	-6.47%	-26.82%
62	-2.80%	13.74%
63	-1.00%	0.54%
64	4.55%	14.36%
65	1.35%	0.43%
66	-8.88%	6.10%
67	-1.04%	-5.71%
68	1.39%	-7.47%
69	-9.99%	-18.87%
70	-18.11%	-41.39%
71	-7.23%	-1.79%
72	0.97%	-17.71%
73	-8.58%	-3.67%
74	-11.39%	-6.50%
75	8.00%	6.49%
76	9.45%	18.73%
77	5.67%	15.52%
78	-0.09%	-5.25%
79	7.19%	-1.15%
80	3.61%	5.28%
81	3.47%	5.86%
82	-1.95%	4.27%
83	5.98%	3.00%
84	1.88%	1.86%
85	-3.71%	-2.54%
86	3.07%	-3.46%
87	5.90%	3.77%
88	1.52%	11.80%
89	-8.29%	-23.71%
90	-5.33%	-1.46%
91	6.60%	7.51%
92	-4.62%	-10.85%
93	8.57%	14.42%
94	3.73%	12.60%
95	-0.01%	10.39%
96	6.46%	7.65%
97	2.29%	6.36%
98	3.40%	5.12%
99	0.01%	-0.17%
100	2.84%	-3.84%
101	-1.13%	-4.30%
102	-1.70%	0.78%
103	-2.02%	4.49%
104	-5.66%	-14.24%
105	-7.20%	-26.85%
106	10.36%	20.70%
107	-0.41%	2.87%
108	1.04%	-9.79%
109	4.53%	9.57%
110	4.24%	3.54%
111	3.16%	-10.43%
112	-0.68%	5.85%
113	-6.20%	-15.49%
114	3.97%	2.58%
115	1.17%	9.33%
116	2.46%	1.92%
117	2.50%	-0.08%
118	-1.84%	-3.96%
119	0.56%	3.36%
120	0.89%	-3.31%