Question: Answer using excel The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices

Answer using excel The Wellton Fund is a balanced

Answer using excel

The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average (DJIA) for a period: Year 3 4 5 6 7 8 9 10 Share Price $14.75 15.06 14.98 15.73 16.11 16.07 16.78 17.69 16.90 17.81 19.08 DJIA 1,046 1.258 1.211 1,546 1,895 1,938 2,168 2,753 2.633 3,168 3,301 (a) Develop a linear trend model to forecast Share Price for year 12. (b) Develop linear trend model for DJIA to predict its value for year 12. (c) Develop regression model to forecast DJIA using Share Price. Predict value of DJIA for year 12 using the value of Share Price predicted in in (a). (d) Which DJIA forecast, regression (c) or liear trend (b), is more accurate. Compute appropriate measures (MAD and MAPD)

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