Question: Assume that the NASDAQ values are measured on a different scale, as the NASDAQ is actually a composite measure of over 5000 different stocks. Multiply

Assume that the NASDAQ values are measured on a different scale, as the NASDAQ is actually a composite measure of over 5000 different stocks. Multiply the NASDAQ values by 5000 and label the new variable NewNASDAQ.
a. Conduct PCA using the covariance matrix on the Dow, S&P, and NewNASDAQ. How does changing the scale influence the eigenvalues and eigenvectors?
b. Conduct PCA using the correlation matrix on the Dow, S& P, and NewNASDAQ. How does changing the scale influence the eigenvalues and eigenvectors?

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