1.Use the monthly data (September 2013 - November 2014) provided on the closing prices for Gold (GLD), NASDAQ, Oil (USO) and Facebook (FB).

Date GLD NASDAQ USO FB

Sep-13 128 3771 37 50

Oct-13 128 3920 35 50

Nov-13 121 4060 33 47

Dec-13 116 4177 35 55

Jan-14 120 4104 35 63

Feb-14 128 4308 37 68

Mar-14 124 4199 37 60

Apr-14 124 4115 36 60

May-14 120 4243 38 63

Jun-14 128 4408 39 67

Jul-14 123 4370 36 73

Aug-14 124 4580 36 75

Sep-14 116 4493 34 79

Oct-14 113 4631 31 75

Nov-14 115 4713 29 74

a.What is the approximate value of mean absolute percentage error (MAPE) of forecasting based on 3months moving average for GLD prices?

3.81%

8.74%

3.44%

8.54%

b.What is the risk as measured by the standard deviation of monthly return for Oil during the sample period?

7.90%

5.19%

2.80%

4.20%

c.What is the approximate value of mean absolute error (MAE) of forecasting based on 5 months moving average for GLD prices?

5.89

4.56

4.10

6.08

d.What is the correlation between prices of NASDAQ and Facebook during the sample period?

0.89

-0.54

0.73

-0.44

e.What is the mean monthly return for Oil during the sample period?

-1.60%

-0.68%

3.12%

1.64%