Question: Below are the monthly returns for March 2011 to February 2016 of three international stock indices; All Ordinaries of Australia, Nikkei 225 of Japan, and

Below are the monthly returns for March 2011 to February 2016 of three international stock indices; All Ordinaries of Australia, Nikkei 225 of Japan, and FTSE 100 of England.
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.

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A All Ordinaries NIKKEI 225 FTSE Ave 010 083 005 Std Dev 363 537 336 The NIKKEI 225index had the hig... View full answer

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