Question: Calculate the weekly arithmetic (discrete) and geometric (continuously compounded) returns for each of the three assigned stocks and the S&P/ASX 200 (^AXJO) for the past
Calculate the weekly arithmetic (discrete) and geometric (continuously compounded) returns for each of the three assigned stocks and the S&P/ASX 200 (^AXJO) for the past 52 weeks (allowing for dividend payments and capital structure changes, if any, in your calculations). Tabulate and graph the returns
Calculate the volume-weighted and equally weighted aggregate return series using the three pre-assigned stocks you have chosen. Examine and compare the pattern of your two weighted aggregate series with those of the three stocks (highlighting the sample returns and variances). Which weighting scheme do you prefer and why?
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