Fantastic work. I am very very happy with the assignment. Thank you so much I will definitely use your services again
1. Calculations Returns and Jarque- Berra Test
The returns for each of the stocks have been calculated using the given formula. These returns signify the performance of the stocks (Jordan, et al., 2010). Similarly the Jarque- Berra test of normality has been done.
It has been observed that there is a relationship between risk and return for GD stock and the BA stock. The BA has a comparatively lower return and higher risk. On the other hand, GD stocks have a higher average return and a comparatively lower risk level. Hence we could conclude that lower rates of return attract higher levels of risks.
We can check the profitability of these two stocks by comparing their average returns and the level of risk. We can then tell the most preferred stock that an investor should invest in. according to this output, GD stocks looks more preferable than Boeing stocks. This is because it offers a high return with low level of risk (Lind, 2008). Similarly, GD stocks are also suitable for risk adverse individuals.
The probability value of this test is 0.022 for the BA stocks. This probability is less than 0.05. Reject the null hypothesis. Conclude that BA stocks are distributed normally. On the other hand, the probability value for the GD stocks is more than0.05. Fail to reject H0 (Stuart A., 1999). Conclude that the returns on GD stocks are not distributed normally.This question aims at testing the hypothesis that the mean return of GD.
MyAssignmenthelp.com caters to thousands of students on a regular basis who need top quality homework help online. We aid students in completing their homework assignments without making holes in their pockets. Despite providing cheap homework help services, we never compromise with the quality of delivered help solutions. Our homework writers are instructed to use authentic and relevant references in writing to make the papers plagiarism-free. Hence, we have become the most authentic and effective homework writing service provider in USA.