he Single Index Model (SIM) is one of the cornerstone models in asset pricing. The objective of this project is to use Excel to test the implications of the SIM. A sample of the excel file will be provided. In this sample file, the SIM will be estimated for one company. Then we will use this developed excel file to extend the test for two companies and conduct a comparative analysis. The two campanies that we use are Microsoft and Apple.

Your report should:

• Briefly discuss the selected companies
• Explain the theoretical justification of the SIM
• Outline the method and data used
• Evaluate the findings
• Discuss the implications for asset pricing

A high standard report will:

• provide clear, concise explanations
• provide critical analysis rather than a description
• incorporate both theory and evidence in your analysis
• use appropriate scholarly research
• recommend strategies for investors

1,500 words is the maximum length of the report. A 10% tolerance applies.Tables, diagrams, footnotes and appendices are allowed and are not included in the word count; however, they should be used sparingly and all key arguments must be in the main body of the report.

you are expected to write in complete sentences and well-structured paragraphs with introduction and conclusion sections. Headings and subheadings are encouraged. The coursework must be presented in PDF or Word format. You should use Times New Roman 12 point font, setup your page size to A4 paper, 1 inch (2.5cm) margins from each side (top, bottom, left, right), 1.5 line spacing, justified margins with footnotes on the same page rather than endnotes. Use the same paragraph format throughout. Number all your pages, tables and diagrams sequentially. Tables and diagrams must have a title and relevant description. Graph axes must be clearly labelled. Readers should be able to understand all tables and diagrams without referring to the main text.