In an in the Journal of Portfolio Management concerning the annualized investment risk and credit rating for
Question:
In an in the “Journal of Portfolio Management” concerning the annualized investment risk and credit rating for each of the 40 countries is given below. Do some exploratory data analysis on this data using the techniques you have learned while SPSS was demonstrated to you. Highlight any findings which you find from this exploratory data analysis. Now prepare a scatter diagram to see the relationship between the given two variables. What kind of relationship do you find? Build a model to fit this relationship. Which countries have an investment risk which is substantially larger than would be suggested by their credit rating? Which countries have an investment risk which is substantially smaller than would be suggested by their credit rating? Discuss different findings from the model you have fitted on this data.
Country | Argentina | Australia | Austria | Belgium | Brazil | Canada | Chile | Colombia |
Risk | 87.0 | 26.9 | 26.3 | 22.0 | 64.8 | 19.2 | 31.6 | 31.5 |
Rating | 31.8 | 78.2 | 83.8 | 78.4 | 36.2 | 87.1 | 38.6 | 44.4 |
Country | Denmark | Finland | France | Germany | Greece | HK | India | Ireland |
Risk | 20.6 | 26.1 | 23.8 | 23.0 | 39.6 | 34.3 | 30.0 | 23.4 |
Rating | 72.6 | 76.0 | 85.3 | 93.4 | 51.9 | 69.6 | 46.6 | 66.4 |
Country | Italy | Japan | Jordan | Korea | Malaysia | Mexico | Netherland | New Zealand |
Risk | 28.0 | 25.7 | 17.6 | 30.7 | 26.7 | 46.3 | 18.5 | 26.3 |
Rating | 75.5 | 94.5 | 33.6 | 62.2 | 64.4 | 43.3 | 87.6 | 68.9 |
Country | Nigeria | Norway | Pakistan | Philippines | Protugal | Singapore | Spain | Sweden |
Risk | 41.4 | 28.3 | 24.4 | 38.4 | 47.5 | 26.4 | 24.8 | 24.5 |
Rating | 30.6 | 83.0 | 26.4 | 29.6 | 56.7 | 77.6 | 70.8 | 79.5 |
Country | Switzerland | Taiwan | Thailand | Turkey | UK | USA | Venezuela | Zimbabwe |
Risk | 19.6 | 53.7 | 27.0 | 74.1 | 21.8 | 15.4 | 46.0 | 35.6 |
Rating | 94.7 | 72.9 | 55.8 | 32.6 | 87.6 | 93.4 | 45.0 | 24.5 |
An Introduction to Statistical Methods and Data Analysis
ISBN: 978-1305269477
7th edition
Authors: R. Lyman Ott, Micheal T. Longnecker