Question

In: Statistics and Probability

This sheet contains data for the monthly returns of the Dow from March 2001 to November...

This sheet contains data for the monthly returns of the Dow from March 2001 to November 1928 (Source Yahoo!/Finance/^DJI/Historic Data). (A) Run descriptive statistics to calculate the mean and standard deviation. Choose cell D9 for the output range. For the next three questions remember to reference cells when data you need are already calculated. Do not retype the data as this could lead to rounding errors. USING EXCEL FOR ANSWERS

Mean 0.005563612
Standard Error 0.001761236
Median 0.008674026
Mode #N/A
Standard Deviation 0.053854677
Sample Variance 0.002900326
Kurtosis 6.847607233
Skewness -0.113212638
Range 0.664588362
Minimum -0.307008106
Maximum 0.357580256
Sum 5.201977167
Count 935

(C) 90% of the time the return on the Dow is less than what amount? (D) 90% of the time the return on the Dow is greater than what amount?

Solutions

Expert Solution

(C). To get Z we have to use =NORM.S.INV(0.9) formula in EXCEL

To get the X value (Need to reference the mean and the standard error cells above appropriately). =B1+F16*B2

B1=mean,F16=the Z value(dine in the previous step) and B2 is the standard error cell reference.

(D). To get Z we have to use =NORM.S.INV(0.1) formula in EXCEL(Note the 0.1 in the NORM function argument here)

To get the X value (Need to reference the mean and the standard error cells above appropriately). =B1+F20*B2

  

orchestra answered 1 year ago
Next > < Previous

Related Solutions

The Apex corporation produces corrugated paper. It has collected monthly data from January 2001 through March...
The Apex corporation produces corrugated paper. It has collected monthly data from January 2001 through March 2003 on the following two variables: y= total manufacturing cost per month (In thousands of dollars) (COST) x= total machine hours used per month (Machine) The data are shown below. y x 1102 218 1008 199 1227 249 1395 277 1710 363 1881 399 1924 411 1246 248 1255 259 1314 266 1557 334 1887 401 1204 238 1211 246 1287 259 1451 286...
The Apex corporation produces corrugated paper. It has collected monthly data from January 2001 through March...
The Apex corporation produces corrugated paper. It has collected monthly data from January 2001 through March 2003 on the following two variables: y= total manufacturing cost per month (In thousands of dollars) (COST) x= total machine hours used per month (Machine) The data are shown below. y x 1102 218 1008 199 1227 249 1395 277 1710 363 1881 399 1924 411 1246 248 1255 259 1314 266 1557 334 1887 401 1204 238 1211 246 1287 259 1451 286...
The following data has been extracted from the records of PURPLE plc at 31 March 2001;...
The following data has been extracted from the records of PURPLE plc at 31 March 2001; K Turnover 18,108,488 Cost of sales 16,471,616 Distribution costs 864,531 Administration expenses 1,494,228 Surplus on sale of fixed assets 11,054 Interest receivable 21,721 Losses due to seizure of imported sugar 351,890 Overdraft interest 139,001 Loan interest (Loan repayable 31 March 2009) 162,299 Corporation tax for the year 8,101 Dividends (interim 0.25p per share) 17,292 Transfer from reserves 1,389,105 You are also given the following...
The attached Excel sheet contains data on annual returns on IBM and 3M stocks over the...
The attached Excel sheet contains data on annual returns on IBM and 3M stocks over the period 1990-2002, as well as annual returns on S&P 500 Index and one-year U.S. Treasury bills for this period. You are asked to evaluate performance of IBM and 3M stocks using the CAPM’s Security Market Line with S&P 500 Index as proxy for the market return. (i) Compute the annual excess returns of IBM, 3M, and the S&P 500. (ii) Use Excel to compute...
The following table contains monthly returns for Cola Co. and Gas Co. for 2010 ​(the returns...
The following table contains monthly returns for Cola Co. and Gas Co. for 2010 ​(the returns are shown in decimal​ form, i.e., 0.035 is​ 3.5%). Using this table and the fact that Cola Co. and Gas Co. have a correlation of −0.0969​, calculate the volatility​ (standard deviation) of a portfolio that is 65% invested in Cola Co. stock and 35% invested in Gas Co. stock. Month   Cola Co   Gas Co Jan   -0.0210   0.0280 Feb   0.0000   -0.0050 Mar   -0.0200   -0.0180 Apr  ...
Data. See Excel spreadsheet “GroupProject1.xlsx”. It contains the monthly returns of value-weighted equity indexes divided into...
Data. See Excel spreadsheet “GroupProject1.xlsx”. It contains the monthly returns of value-weighted equity indexes divided into various groups: • North America — Canada and the United states • Japan • Asia Pacific — Australia, Hong Kong, New Zealand, and Singapore • Europe — Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom • Global – All of the above countries All index returns are in US dollar terms. In...
The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these​...
The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these​ data, estimate the average monthly return and the volatility for each stock. Month Cola Co. Gas Co. January negative 1.80​% 8.20​% February negative 3.70​% negative 4.60​% March negative 0.05​% 5.50​% April negative 1.20​% 1.90​% May 1.90​% negative 1.00​% June 1.90​% 4.90​% July 0.60​% negative 2.70​% August negative 2.10​% negative 6.00​% September 4.10​% 4.50​% October negative 2.40​% 1.70​% November negative 8.60​% negative 3.70​% December negative...
1. The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using...
1. The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these​ data, estimate the average monthly return and the volatility for each stock. Cola Co.    Gas Co. January -0.0990   0.0440 February -0.0160   0.0560 March 0.0420   -0.0130 April -0.0260   -0.0200 May -0.0910   -0.0160 June -0.0820   -0.0380 July 0.1200   0.0470 August -0.0070   0.0040 September -0.0700   -0.0090 October 0.0120    0.0040 November 0.0920   0.1020 December -0.0110   0.0550 The average monthly return for Cola Co. is ___​%....
Condensed monthly income data for Thurber Book Stores are presented in the following table for November...
Condensed monthly income data for Thurber Book Stores are presented in the following table for November 20x1. (Ignore income taxes.) Mall Store Downtown Store Total Sales $ 255,000 $ 390,000 $ 645,000 Less: Variable expenses 102,000 270,000 372,000 Contribution margin $ 153,000 $ 120,000 $ 273,000 Less: Fixed expenses 64,500 135,000 199,500 Operating income $ 88,500 $ (15,000 ) $ 73,500 Additional Information: Management estimates that closing the downtown store would result in a 10 percent decrease in mall store...
How do I do this in excel? The data contains data on monthly mortgage payments for...
How do I do this in excel? The data contains data on monthly mortgage payments for 150 homeowners for year 2010 and year 2015. Note that this is a matched sample. Using the appropriate Excel data analysis tool or formulas, test the hypothesis to determine if mortgage payments have risen from 2010 to 2015. The data is too long. If you can make a small example with random variables. Use α = .05. State hypothesis used for this.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT