Question
In: Statistics and Probability
1. Use the data below. Date DOW S&P500 8-Apr-20 23,719.37 2,789.82 1-Apr-20 22,653.86 2,659.41 25-Mar-20 21,917.16...
1. Use the data below.
| Date | DOW | S&P500 |
| 8-Apr-20 | 23,719.37 | 2,789.82 |
| 1-Apr-20 | 22,653.86 | 2,659.41 |
| 25-Mar-20 | 21,917.16 | 2,584.59 |
| 18-Mar-20 | 20,704.91 | 2,447.33 |
| 11-Mar-20 | 21,237.38 | 2,529.19 |
| 4-Mar-20 | 25,018.16 | 2,882.23 |
| 26-Feb-20 | 25,917.41 | 3,003.37 |
| 19-Feb-20 | 27,081.36 | 3,128.21 |
| 12-Feb-20 | 29,232.19 | 3,370.29 |
| 5-Feb-20 | 29,276.34 | 3,357.75 |
| 29-Jan-20 | 28,807.63 | 3,297.59 |
| 22-Jan-20 | 28,722.85 | 3,276.24 |
| 15-Jan-20 | 29,196.04 | 3,320.79 |
| 8-Jan-20 | 28,939.67 | 3,283.15 |
| 1-Jan-20 | 28,583.68 | 3,237.18 |
c. Suppose that the closing price for the DOW is 29,000.
Estimate the closing price for your data for
April.a.. Use the data to develop an estimated
regression equation showing how your team data is related to DOW,
the Dow Jones industrial average. What is the estimated regression
model?
Let x represent the DOW indexes.
b. How much of the variation in the sample values of
your team data does the model estimated in part (b) explain?
Round your answer to two decimal places.
d. Preform a hypothesis test for the model (F test) with an significance of 0.05. State your conclusion.
e. Preform a hypothesis test for each of the estimated coefficients at the 0.05 level of significance. State your conclusions.
Solutions
orchestra answered 2 years agoRelated Solutions
Date DOW RUSSELL 8-Apr-20 23,719.37 1,246.73 1-Apr-20 22,653.86 1,139.17 25-Mar-20 21,917.16 1,153.10 18-Mar-20 20,704.91 1,096.54 11-Mar-20...
Date
DOW
RUSSELL
8-Apr-20
23,719.37
1,246.73
1-Apr-20
22,653.86
1,139.17
25-Mar-20
21,917.16
1,153.10
18-Mar-20
20,704.91
1,096.54
11-Mar-20
21,237.38
1,106.51
4-Mar-20
25,018.16
1,350.90
26-Feb-20
25,917.41
1,486.08
19-Feb-20
27,081.36
1,571.90
12-Feb-20
29,232.19
1,683.52
5-Feb-20
29,276.34
1,677.51
29-Jan-20
28,807.63
1,656.77
22-Jan-20
28,722.85
1,658.31
15-Jan-20
29,196.04
1,685.90
8-Jan-20
28,939.67
1,675.74
1-Jan-20
28,583.68
1,658.31
a. Create a scatter plot. Say what you see.
b. Use the data to develop an estimated regression
equation showing how your team data is related to DOW, the Dow
Jones industrial average....
Use the following table to answer the question below. Expected ret. std. dev. S&P500 13% 25%...
Use the following table to answer the question below.
Expected ret.
std. dev.
S&P500
13%
25%
ABC Fund
20%
29%
T-bill
4%
Borrow
8%
What is the highest fee that a client who is currently borrowing
would be willing to pay to invest in ABC fund instead of
S&P500?
Round your answer to 4 decimal places. For example, if your
answer is 3.205%, then please write down 0.0321.
Month Sales (2005) Sales (2006) Jan 5 21 Feb 8 20 Mar 10 29 Apr 18...
Month
Sales (2005)
Sales (2006)
Jan
5
21
Feb
8
20
Mar
10
29
Apr
18
32
May
26
44
Jun
35
58
Jul
28
46
Aug
20
32
Sep
14
27
Oct
8
13
Nov
6
11
Dec
26
52
a.Plot the data using Minitab. What kind of pattern do you
observe?
b.Develop a trend line equation for this data (Use Minitab).
c.Decompose the above time series using a multiplicative model.
Store the trend line, detrended data, seasonals, seasonally...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
Suppose that the next S&P500 return will be 7%. Use the CAPM
model to calculate the expected return...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
Assuming normal distribution, what is the probability that the
next S&P500 return will be greater than 0?
Please...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
What is the sample standard deviation of the stock A
returns?
Please write an answer in decimals. For...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
Assuming normal distribution, what is the probability that the
next stock A return will be less than 0?...
Presented below is information related to Bridgeport Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30...
Presented below is information related to Bridgeport
Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost
$17,550 $17,667 $19,890 $16,380 Inventory at LCNRV 16,965 14,742
18,252 15,561 Purchases for the month 19,890 28,080 31,005 Sales
for the month 33,930 40,950 46,800 Partially correct answer. Your
answer is partially correct. Try again. From the information,
prepare (as far as the data permit) monthly income statements in
columnar form for February, March, and April. The inventory is to
be...
Presented below is information related to Vaughn Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30...
Presented below is information related to Vaughn
Enterprises.
Jan. 31
Feb. 28
Mar. 31
Apr. 30
Inventory at cost
$17,250
$17,365
$19,550
$16,100
Inventory at LCNRV
16,675
14,490
17,940
15,295
Purchases for the month
19,550
27,600
30,475
Sales for the month
33,350
40,250
46,000
(a)
New attempt is in progress. Some of the new entries may impact
the last attempt grading.Your answer is partially correct.
From the information, prepare (as far as the data permit)
monthly income statements in columnar...
True or False 12. If you have the historical data of S&P500 index level in the...
True or False
12. If you have the historical data of S&P500 index level in
the last 5 years, you can compute the returns of investment in 500
stocks in the S&P500. Assume you know the 500 constituents.
13. If you just watched bad news on the market on CNBC and if
you believe the market risk premium is 0.5% for the next month and,
you should short sell the market to maximize your Sharpe ratio.
14. A portfolio’s net...
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