Reference no: EM131257143
Assignment
This assignment will require you to analyze time series of monthly returns. Start by retrieving MONTHLY data for the period of 1 August, 2013 - 1 August, 2016 from
Yahoo website for
- S&P 500 Index (ticker: ^GSPC)
- Exxon Mobil Corporation (ticker: XOM)
- Facebook, Inc. (ticker: FB)
Instructions for downloading the data from Yahoo!:
To obtain the monthly data for each company, on Yahoo! Finance website, enter the ticker symbol under Quote Lookup. Then, click on "Historical Data". Enter "Time Period" as given above. For "Frequency", make sure Monthly is selected and then click on "Apply". Click on "Download Data".
Instructions for sorting the data by DATE:
By default, the data is in descending order (Newest to Oldest). You need to re-sort the data so that the oldest date is at the top of your spreadsheet (i.e. highlight DATE columns and click on DATA and then SORT, make sure you "Expand the selection" is selected, then click on SORT and sort by Date and order by ‘Oldest to Newest').
First Calculate Returns:
Keep only Date and Adj Close columns for each company. Put all three sets of data inone excel file to do further analysis.
Use the ‘Adj Close' column to obtain returns for each period.
Remember that theAdjusted Close column has already adjusted the prices for dividends and stock splits so you do not have to adjust for it again. Just use the adjusted close column to obtain the returns.
11 = -t- tt P PR
Solve for the following:
A. Calculate the average return, variance and standard deviation of returns of each series. Comment on the statistics.
B. Calculate the covariance and the correlation coefficient between each of the return series (there should be a total of three correlations and three covariances). Comment on the statistics.
C. If you were to form a portfolio that had 50% of the S&P 500 Index and 50% of Exxon Mobil, what would be the average returns and the standard deviation of that portfolio? (Ignore the fact that both Exxon may already be included in the S&P 500)
D. If you were to add Facebook, Inc to your portfolio so that you now had 33% S&P 500, 33% Exxon Mobile, and 34% Facebook, what would be the new average returns and standard deviation? (Ignore the fact that both Exxon and Facebook may already be included in the S&P 500) Is Facebook a good addition to your portfolio? Why do you think so?
E. Determine Exxon's beta and Facebook's beta for the Aug1 2013 - Aug 1, 2016 period. Comment on the statistics.
Explain how a person using 2 sigma control charts
: List some possible causes of assignable variation ? Explain how a person using 2-sigma control charts will more easily find samples "out of bounds" than 3-sigma control charts.
|
Production function for good
: Suppose the production function for good q is given by q=3 K + 2L where K and L are capital and labor inputs. Consider three statements about this function:
|
Can a production process be labeled as out of control
: When is the desired mean, m , used in establishing the centerline of a control chart instead of x ? - Can a production process be labeled as "out of control" because it is too good? Explain?
|
Record the conversion of the preferred stock
: Pechstein Corporation issued 2,780 shares of $8 par value common stock upon conversion of 1,200 shares of $50 par value preferred stock. The preferred stock was originally issued at $58 per share. The common stock is trading at $27 per share at the t..
|
Calculate the covariance and the correlation coefficient
: Calculate the covariance and the correlation coefficient between each of the return series (there should be a total of three correlations and three covariances). Comment on the statistics.
|
Define cpk and explain what a cpk of 1 means
: Define Cpk and explain what a Cpk of 1.0 means. - What is Cp ? - What does a run of 5 points above or below the centerline in a control chart imply?
|
Are these goals reasonable and attainable
: Select health education theories and models that will be incorporated into the design. How would your selected theories or models address health literacy? How would they address cultural appropriateness?
|
Who had power in this organization
: 1. Who had power in this organization? What type of power did Harry Walden have? 2. Do you think Roger played company politics well? If so, why didn't he get the international sales job?
|
What are the acceptable quality level
: What are the acceptable quality level (AQL) and the lot tolerance percentage defective (LTPD)? How are they used?
|