Question

As investor, you need to compare the returns and the risks associated with two different Assets
(stocks, cryptocurrencies or commodities).
The data are given in an excel file format called Project Dataset # file, posted on your BB.
Group #1: OOREDOO and Vodafone
2. Use descriptive statistics to summarize the data. (Numerical and Graphical).
3. Extract a sample of 100 observations from each series (the selected sample will be used in
the part of inferential statistics).
4. Show how you can compare the risks associated with the two selected assets by testing the
null hypothesis that the variances of the assets are equal. Use  = 0.05 and interpret the
results of the statistical test.
5. Show how you can compare between the returns of the two stocks by testing the null
hypothesis that the average returns of the assets are equal. Use  = 0.05 and interpret the
results of the statistical test.

R_Vodafone	R_ooredoo
-0.27137	-0.6795
9.45688	1.006282
7.269429	-2.14915
2.272825	-1.15608
0	0
-4.48093	-4.1549
-3.8328	0
-5.52211	0.060591
-0.77721	0.302389
0.906155	0.253301
1.788043	-1.22419

Answer 1

Solution2:

Install analysis toolpak inexcel

In excel go to data >data anlaysis>descriptive statistics

select the data

highlight summary statistics

enable labels in first row

You will get:

R_Vodafone		R_ooredoo
Mean	0.618992	Mean	-0.703750636
Standard Error	1.392143373	Standard Error	0.435919955
Median	0	Median	0
Mode	#N/A	Mode	0
Standard Deviation	4.617217223	Standard Deviation	1.44578293
Sample Variance	21.31869488	Sample Variance	2.09028828
Kurtosis	0.094094285	Kurtosis	2.445499317
Skewness	0.663624074	Skewness	-1.468825152
Range	14.97899	Range	5.161182
Minimum	-5.52211	Minimum	-4.1549
Maximum	9.45688	Maximum	1.006282
Sum	6.808912	Sum	-7.741257
Count	11	Count	11

Boxplot:

From boxplot we get 5 number summary

min,Q1,Q2,Q3,and max

For R_vodafone the fivenumber summary is

min=-5.522

Q1=-2.305005

Q2=0

Q3=2.0304

Max=9.45688

For R_coredoo,the fivenumber summary is

min=-4.1549

Q1=-1.19014

Q2=0

Q3=0.156946

Max=1.006282

From descriptive stats we observe

For R_vodafone distribution is positively skewed as mean >median,follows skewed distribution

For R_coredoo distribution is symmetrically distributed as mean <=median follows normal distribution

4. Show how you can compare the risks associated with the two selected assets by testing the
null hypothesis that the variances of the assets are equal. Use  = 0.05 and interpret the
results of the statistical test.

null hypothesis,Ho- variances of the assets are equal.

H0:

Alternative hhypothesis -Ha- variances of the assets are not equal.

Ha:

alpha=0.05

use excel

F-Test Two-Sample for Variances
	R_Vodafone	R_ooredoo
Mean	0.618992	-0.703750636
Variance	21.31869488	2.09028828
Observations	11	11
df	10	10
F	10.19892571
P(F<=f) one-tail	0.000525589
F Critical one-tail	2.978237016

TEST STATISTIC:

F=10.1989

p=0.0005

p<0.05

Reject H0

Accept Ha

Conclusion:

there is no sufficient statisitical evidence at 5% level of signifcance to conclude that

variances of the assets are equal.