FIRE 623

Summer 2014
Dan Salandro
a) Collect ten years worth o monthly !r"ces or your two stoc#s and then collect
the monthly !r"ces or the S$% &00' (SE)S and an Ind"an mar#et stoc# o your
cho"ce rom the *ahoo we+s"te, Demonstrated "n class,
+) Calculate the returns or each o these secur"t"es
c) Calculate the mean' standard de-"at"on' ma."mum' m"n"mum and count or each
o these return arrays, /a#e sure that you !lace these !arameters "n an out!ut +o.
or ease o use +y the reader,
d) 0se the array unct"on 1re2uency3 to construct re2uency d"str"+ut"ons or each
o these sets o returns or all ten years, 4ra!h these re2uency d"str"+ut"ons,
e) /a#e sure that you "nsert hy!erl"n#s to ease mo-ement w"th"n your s!readsheets,
5hese should l"n# the reader to the descr"!t"-e data and the re2uency d"str"+ut"on
chart rom the to! o the s!readsheet and then return the reader to the to! o the
s!readsheet,
) F"nd the C678R and C6RRE9 o returns or all !oss"+le !a"rs,
:) Calculate all !oss"+le com+"nat"ons o Co-ar d"-"ded +y the !roduct o the !a"rs
standard de-"at"ons,
h) Com!are your answer "n :) to the Correl calculated "n )
") F"nd the +eta o your two D;I secur"t"es and your Ind"an stoc# us"n: +oth the S$%
&00 and the (SE)S as your mar#et !ro.y "n the ollow"n: ways<
") Co- d"-"ded +y the mar#ets -ar"ance
"") Re:ress"on analys"s' your "rms returns on the mar#et !ro.ys returns
""") (eta re!orted on *ahoo=
>) D"scuss your "nd"n:s "n ") +e sure to e.!la"n any s"m"lar"t"es or d"erences "n
your o+ser-at"ons,
#) Construct a two secur"ty com+"nat"on l"ne o all the !oss"+le e.!ected returns and
standard de-"at"on !ortol"os or each !a"r o !oss"+le secur"t"es,
l) 0se the data -al"dat"on ca!a+"l"ty o E.cel to ad>ust your :ra!h or d"erent
correlat"on coe"c"ents ?@1'0'1 and the one you com!uted)
m) Create a new wor#sheet and !lace all o your answers to the a+o-e 2uest"ons "n
an out!ut ta+le,
n) *ou w"ll dro! your s!readsheet "n the ass":nment older o the (+ s"te