Question

SP500-RF	KBH-RF	DUK-RF
2.97%	12.41%	2.93%
4.46%	-5.83%	7.41%
2.80%	3.30%	-2.47%
2.36%	4.43%	-0.27%
-3.56%	5.80%	2.33%
4.31%	5.48%	0.37%
0.69%	-16.60%	1.59%
0.62%	-2.83%	4.59%
2.10%	-0.03%	-4.58%
1.91%	13.35%	5.52%
-1.51%	-12.74%	-2.78%
3.77%	8.90%	2.58%
-1.55%	-15.70%	2.19%
2.32%	5.35%	9.87%
2.45%	11.63%	-1.52%
-0.42%	-5.66%	4.27%
-3.10%	-24.71%	4.31%
5.49%	11.96%	-9.86%
-1.74%	12.20%	-1.32%
0.85%	-7.23%	1.03%
1.05%	2.00%	-2.37%
-2.10%	12.50%	-5.77%
1.97%	-3.73%	5.10%
-6.26%	-8.32%	-4.46%
-2.64%	-7.36%	2.58%
8.30%	-3.32%	-0.65%
0.05%	7.56%	-5.19%
-1.76%	-12.34%	7.96%
-5.08%	-11.93%	5.47%
-0.43%	12.32%	-1.37%
6.58%	17.30%	9.74%
0.26%	-4.98%	-2.36%
1.52%	2.72%	-0.71%
0.07%	9.29%	10.79%
3.54%	3.20%	-0.25%
-0.14%	-0.02%	-6.95%
-0.14%	2.82%	1.48%
-1.96%	-9.82%	-0.04%
3.41%	8.93%	-7.82%
1.79%	-0.05%	6.39%
1.75%	3.57%	1.15%
3.68%	8.32%	5.07%
-0.07%	12.14%	0.42%
0.86%	3.57%	0.55%
1.10%	1.78%	3.79%
0.42%	14.33%	-1.49%
1.86%	-4.45%	1.76%
-0.04%	-6.72%	2.47%
1.84%	12.74%	-2.97%
2.13%	13.63%	5.14%
0.29%	3.38%	0.91%
3.34%	12.59%	-4.84%
5.51%	-1.46%	-6.78%
-4.00%	-12.07%	-4.14%
-2.81%	2.48%	3.93%
0.13%	-6.82%	3.33%
2.02%	-0.93%	-3.88%
0.34%	3.37%	3.56%
3.44%	-12.97%	3.05%
2.87%	4.47%	-0.63%

Use the excess returns above to estimate the single index model alpha and beta for each firm. a. Report the regression R-square for KBH. Use percent expression and round to 2 decimal places.

Answer 1