The exercise file for this chapter contains daily price data for the S&P 500 index and for
Question:
The exercise file for this chapter contains daily price data for the S&P 500 index and for Abbott Laboratories for the 3 months April–June 2007. Use these data to compute the annual average, variance, and standard deviation of the logarithmic returns for the S&P and for Abbott. What is the correlation between the returns of the S&P 500 and Abbott?
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Because Abbott Laboratories is relatively overvalued the longterm return of its st...View the full answer
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Dudhat Vaidehi
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