Following are the monthly returns for October 2007 to March 2013 of three international stock indices; All Ordinaries of Australia, Nikkei 225 of Japan, and FTSE 100 of England.

Continue Table

A. Compute and compare each indices’ monthly average return and standard deviation.
B. Compute the correlation between (i) All Ordinaries and Nikkei 225, (ii) All Ordinaries and FTSE 100, and (iii) Nikkei 225 and FTSE 100, and compare them.
C. Form a portfolio consisting of one third of each of the indices and show the portfolio return each year, and the portfolio’s return and standard deviation.

  • CreatedSeptember 23, 2014
  • Files Included
Post your question