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

Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

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 / 1,262 Words tag 22-09-2021

Question:

Create the line charts for each of S&P, Yahoo and Google series using Close prices against time in Excel and comment on your observations (focusing time series features). 
a. Calculate returns for these three series in Excel using the transformation: rt = 100 ln[Pt/Pt-1]
Hints:
• We performed a similar task in Tutorial 01.
• These numbers would represent percentages after multiplication with 100 in the formula above. However,you would not put a percentage sign in your data. For example, returns for two periods are 0.35% and 0.41% but we omit % sign in our excel worksheet and use 0.35 and 0.41.
b. Obtain the summary statistics for your sample and briefly discuss the risk and average return relationship in each stock. Which stock (Google or Yahoo) is relatively riskier than the other
c. Perform the Jarque-Berra test of normally distributed returns for each of Yahoo, Google and S&P.
 
Write down the sampling distribution of sample means for both stocks when a sample of 36 months is taken. Use the sampling distributions of part (a) above to answer the following parts.
b. What is the probability of observing average return of at least 4% in both stocks
c. What is the likelihood of loss in a sample of 36 periods for both stocks

Before investing in one of the two stocks based on higher risk-return relationship, you further want to determine whether both stocks have same population average return. Perform an appropriate hypothesis test using information in your actual sample of 56 observations and report your findings. Also, which stock will you prefer and why

Create two new columns in Excel for excess return on your preferred stock (yt) and excess market return (xt) by subtracting the 10-year T-Bill rate from both series as follows.
Excess return on your preferred stock: yt = rt - rf,t
Excess return on market: xt = rM,t - rf,t

a. Estimate the CAPM using linear regression where the dependent variable is excess return on your preferred stock while the independent variable is excess market return (computed as return on S&P 500 minus the risk fee rate) and report your results.
b. Interpret the estimated coefficients in relation to the profitability of the Stock and its riskiness in comparison with the market.
c. Interpret the value of R2
d. Interpret 95% confidence interval for the slope coefficient.
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. (2021). BUS5SBF Statistics For Business And Finance. Retrieved from https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/statistical-metrics.html.

"BUS5SBF Statistics For Business And Finance." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/statistical-metrics.html.

My Assignment Help (2021) BUS5SBF Statistics For Business And Finance [Online]. Available from: https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/statistical-metrics.html
[Accessed 03 February 2023].

My Assignment Help. 'BUS5SBF Statistics For Business And Finance' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/statistical-metrics.html> accessed 03 February 2023.

My Assignment Help. BUS5SBF Statistics For Business And Finance [Internet]. My Assignment Help. 2021 [cited 03 February 2023]. Available from: https://myassignmenthelp.com/free-samples/bus5sbf-statistics-for-business-and-finance/statistical-metrics.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!

Enter phone no. to receive critical updates and urgent messages !

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?
close
Subtraction Payment required!

Only one step away from your solution of order no.