Expected return-variance and variance-covariance matrix

Assignment Help Financial Management

Reference no: EM131359287

If we have historical WEEKLY data for 4 stocks, but my investemtn period is 3 MONTHS, how based on historical data I can estimate the expected return, variance and variance-covariance matrix? I kow how to do that for weekly returns and everyone i ask this question gives me an answer in terms of weekly returns, but I am conserned about 3 MONTHS investment horizon. Can someone, please, tell me how to do this? I have an idea from weekly data use every 13th week to calculate returns for 3 months, and proceed from there, but not sure whether I am on the right track.

Reference no: EM131359287

Questions Cloud

Define the sdlc model and methodology : Be sure to define the SDLC model and methodology and identify which SDLC step is associated with each project component - Select a System/Software Development Life Cycle (SDLC) model and methodology then apply this model and methodology to a project..

How many bingo squares did you cover : Which media did you watch (name of TV show/film)?What was the premise of the show/film?How many bingo squares did you cover?Which squares did you cover and WHY? (be sure to give a detailed explanation as to why you covered those squares using speci..

Explain accidents : Explain accidents? What are the classifications of accidents and what methods can be used to reduce accidents?

Determine the slip under this operating condition : Assume for a 3-phase induction motor that for a certain operating condition the stator I2R = rotor I2R = core loss = rotational loss and that the output is 30 KW at 86% efficiency. Determine the slip under this operating condition.

Expected return-variance and variance-covariance matrix : If we have historical WEEKLY data for 4 stocks, but my investemtn period is 3 MONTHS, how based on historical data I can estimate the expected return, variance and variance-covariance matrix? I kow how to do that for weekly returns and everyone i ask..

How will it benefit the lives of americans across country : Why should this change be made? How will it benefit the lives of Americans across the country? Why does this issue need a Constitutional Amendment and not just a state or federal law change?

What is the initial investment outlay : Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $17 million, and production and sales will require an initial $5 million investment in net operating working capital. The company's tax rate is 40%. W..

Find the additional resistance required to be inserted : The motor drives a constant torque load. Suppose that we need the motor to run at 950 rpm while driving the same load. Find the additional resistance required to be inserted in the rotor circuit to fulfill this requirement.

Changing a culture from one that rewards secrecy : Changing a culture from one that rewards secrecy to one that is more transparent ( especially in a crisis ) appears to be difficult. Why?

User Account

All Pages