setwd("D:/Rcode")
getwd()

capm <- read.csv("D:/data/capm.csv",header=T)
class(capm)

View(capm)
head(capm)

rf <- capm[,8]
mean(rf)*100*12

exxon <- capm[,2]
ge <- capm[,3]
gold <- capm[,4]
ibm <- capm[,5]
wmart <- capm[,6]
msoft <- capm[,7]
sp500 <- capm[,10]

r.exxon <- diff(log(exxon))
r.sp500 <- diff(log(sp500))

exxon.ex <- r.exxon-rf[-1]  # Exxon excess return
mkt.ex <- r.sp500-rf[-1]    # Market excess return

exxon.capm <- lm(exxon.ex ~ mkt.ex)
summary(exxon.capm)
names(exxon.capm)
param <- exxon.capm$coefficients
param
resids <- exxon.capm$residuals
ts.plot(resids)
abline(h=0)
hist(resids)
library(MASS)
truehist(resids,main="Residuals")