Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader

Phone no. Missing!

Please enter phone for your order updates and other important order related communication.

Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

BUS5SBF-Statistics For Business And Finance

tag 0 Download 6 Pages / 1,398 Words tag 27-10-2020
  • Course Code: BUS5SBF
  • University: La Trobe University
    icon

    MyAssignmentHelp.com is not sponsored or endorsed by this college or university

  • Country: Australia

Questions:

1. Calculate returns for these three series in Excel or any software of your choice using the transformation: r  = 100*ln(P  / P ) and perform the Jarque-Berra test of normally distributed returns for each of Boeing and GD. What do you infer about the distribution of the two stock returns series? Describe also the risk and average return relationship in each of the two stocks.
 
2. Test a hypothesis that the average return on GD stock is different from 2.8%. Which test statistic would you choose to perform this hypothesis test and why? Also, specify the distribution of the test statistic under the null hypothesis.
 
3. Before investing in one of the two stocks, you rst want to compare risk associated with each of the two stocks. Perform an appropriate hypothesis test using 5% signicance level and interpret your results.
 
4. Besides, you want to determine whether both stocks have same population average return. Perform an appropriate hypothesis test using information in your sample of  60 observations on returns. Report your ndings and also mention which stock will you prefer and why?
 
5. Compute excess return on your preferred stock as y  = r  - r    and excess market return as x  = r  - r   and perform the following tasks.
 
a.    Estimate the CAPM using linear regression by regressing the excess return on your preferred stock (y ) on excess market return (x ) and properly report your regression results.
 
b.    Interpret the estimated CAPM beta-coecient in terms of the stock's riskiness in comparison with the market.
 
c.    Interpret the value of R .
 
d.    Interpret 95% condence interval for the slope coecient. 
 
6.  Using the condence interval approach to hypothesis testing, perform the hypothesis test to determine whether your preferred stock is a neutral stock. 
 
7. One of the assumptions of ordinary least squares (OLS) method is; normally distributed error term in the model. Perform an appropriate hypothesis test to determine whether it is plausible to assume normally distributed errors.
Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 6 pages

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2020). Statistics For Business And Finance. Retrieved from https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/risk-return-relationship.html.

My Assignment Help (2020) Statistics For Business And Finance [Online]. Available from: https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/risk-return-relationship.html
[Accessed 07 December 2022].

My Assignment Help. 'Statistics For Business And Finance' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/risk-return-relationship.html> accessed 07 December 2022.

My Assignment Help. Statistics For Business And Finance [Internet]. My Assignment Help. 2020 [cited 07 December 2022]. Available from: https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/risk-return-relationship.html.


Stuck on Any Question

Our best expert will help you with the answer of your question with best explanation.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

Phone no. Missing!

Please enter phone for your order updates and other important order related communication.

loader
250 words
Error goes here

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

We Can Help!

Get top notch assistance from our best tutors !
Excel in your academics & career in one easy click!

icon

Other Samples

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?