1. Let's say I want to analyse coca cola's stock (monthly for 5 years) Use Rstudio. Your next task is to calculate daily/weekly/monthly returns for the Open prices (which is the opening price for the day/week/month and is also the last recorded price for the previous day/week/month). Recall that return is calculated by, if weekly interval is used: (Price in current week – Price in the previous week)/Price in the previous week (and in a similar way daily/monthly return can be calculated if a different time interval is used). For example, given the below table, returns for the week starting 7/01/2018 is calculated by: (6122.3-6065.1)/ 6065.1=0.009431. You can rename this variable as “RET”. You can also create lagged returns (RETLAG) as this is just the return from the previous week:

2. Date	Open	RET	RETLAG
   31/12/2017	6065.1
   7/01/2018	6122.3	0.009431
   14/01/2018	6070.1	-0.00853	0.009431
   21/01/2018	6005.8	-0.01059	-0.00853

   ABOVE is the example ^

   Present your data graphically and discuss the results. Please explain whether transformation/adjustment/decomposition is needed for your data. Plot the company returns ACF. Do the returns look like white noise? Explain. 

Answer rating: 100% (QA)

To calculate daily weekly and monthly returns for CocaColas stock using RStudio you can follow ... View the full answer