Please answer the following questions using the data in the attached Excel file You are thinking of investing in Abercrombie and Fitch Co (ANF) The returns for ANF are embedded in an Excel document below (Source yahoo com) 1 For the investment in ANF that you are considering, for all of 2012 determine the following items a) the mean return b) the median return c) the standard deviation d) the variance e) the coefficient of variation The weekly rates of return for ANF stock and the overall market are embedded Weekly returns of the markets are based on the S P Index Using linear regression analysis, please answer the following questions a) Write the equation for the relationship between ANFs stock price and the overall market In other words, what is the estimated relationship between ANFs stock price and the overall market b) What percentage of the variability in ANFs stock price can be explained by the relationship to the returns of the overall market (Note this is a measure of the stocks market related risk ) c) Would you recommend using the estimated linear relationship as an estimate of the likely change in ANFs stock price given an estimate of the likely change in the S P index Why or why not Be specific in your answer Weekly Investment Data S P Index ANF Abercrombie Fitch Co Date Open High Low Close Volume Adj Close Return Open High Low Close Volume Adj Close Return 12 24 2012 1430 15 1430 15 1401 8 1418 1 2121390000 1418 1 0 84 47 33 48 04 44 87 46 16 1608500 46 16 2 55 12 17 2012 1413 54 1448 1413 54 1430 15 4108678000 1430 15 1 17 47 49 1 46 2 47 37 2724100 47 37 1 26 12 10 2012 1418 07 1438 59 1411 88 1413 58 3383768000 1413 58 0 32 47 48 47 97 46 17 46 78 2844000 46 78 0 84 12 3 2012 1416 34 1423 73 1398 23 1418 07 3386154000 1418 07 0 13 46 03 46 63 44 79 46 39 2408200 46 39 1 09 11 26 2012 1409 15 1419 7 1385 43 1416 18 3390836000 1416 18 0 50 45 1 46 33 44 02 45 89 3931800 45 89 3 36 11 19 2012 1359 88 1409 16 1359 88 1409 15 2688502500 1409 15 3 62 41 26 44 52 41 09 44 4 3451900 44 4 9 06 11 12 2012 1379 86 1388 81 1343 35 1359 88 3621476000 1359 88 1 45 31 41 42 9 30 74 40 87 11496600 40 71 29 69 11 5 2012 1414 02 1433 38 1373 03 1379 85 3602274000 1379 85 2 43 32 69 34 43 31 16 31 52 2099400 31 39 3 86 10 31 2012 1410 99 1434 27 1405 95 1414 2 3746493300 1414 2 0 16 30 79 33 42 30 18 32 78 2638400 32 65 7 19 10 22 2012 1433 21 1435 46 1403 28 1411 94 3397482000 1411 94 1 48 31 92 32 18 30 06 30 58 1904400 30 46 4 45 10 15 2012 1428 75 1464 02 1427 24 1433 19 3692620000 1433 19 0 32 33 02 33 56 31 75 32 01 2308400 31 88 2 89 10 8 2012 1460 93 1460 93 1425 53 1428 59 3115478000 1428 59 2 21 32 16 34 4 32 07 32 96 2085600 32 83 0 92 10 1 2012 1440 9 1470 96 1439 01 1460 93 3429462000 1460 93 1 41 33 28 34 05 32 14 32 66 1857200 32 53 3 70 9 24 2012 1459 76 1463 24 1430 53 1440 67 3394752000 1440 67 1 33 36 65 36 65 33 84 33 92 2321400 33 78 8 03 9 17 2012 1465 42 1467 07 1449 98 1460 15 3705514000 1460 15 0 38 39 09 39 25 36 65 36 88 2212700 36 73 6 30 9 10 2012 1437 92 1474 51 1428 98 1465 77 4004608000 1465 77 1 94 36 4 39 65 35 1 39 36 4790200 39 2 7 90 9 4 2012 1406 54 1437 92 1396 56 1437 92 3564977500 1437 92 2 23 35 86 36 77 34 43 36 48 1656300 36 33 1 34 8 27 2012 1411 13 1416 17 1397 01 1406 58 2628268000 1406 58 0 32 36 29 37 35 37 35 99 1585600 35 85 0 55 8 20 2012 1417 85 1426 68 1398 04 1411 13 2943798000 1411 13 0 50 35 71 37 44 34 95 36 19 2348100 36 05 1 21 8 13 2012 1405 87 1418 71 1397 32 1418 16 2824746000 1418 16 0 87 32 11 36 25 31 69 35 93 4546500 35 62 12 26 8 6 2012 1391 04 1407 14 1391 04 1405 87 3182784000 1405 87 1 07 29 38 32 29 28 91 32 01 3519500 31 73 9 00 7 30 2012 1385 94 1394 16 1354 65 1390 99 3883892000 1390 99 0 36 36 39 36 75 28 64 29 37 7705300 29 11 20 09 7 23 2012 1362 34 1389 19 1329 24 1385 97 4031190000 1385 97 1 71 35 85 37 34 66 36 75 2309600 36 43 0 11 7 16 2012 1356 5 1380 39 1345 07 1362 66 3608082000 1362 66 0 43 35 42 36 97 33 77 36 71 2861100 36 39 3 47 7 9 2012 1354 66 1361 54 1325 41 1356 78 3333824000 1356 78 0 16 33 38 35 71 32 45 35 48 3820600 35 17 5 87 7 2 2012 1362 33 1374 81 1348 03 1354 68 2801175000 1354 68 0 55 34 81 35 14 33 1 33 51 2195800 33 22 1 83 6 25 2012 1334 9 1362 17 1309 27 1362 16 3752304000 1362 16 2 03 30 25 34 7 29 51 34 14 3268800 33 84 11 17 6 18 2012 1342 42 1363 46 1324 41 1335 02 4027288000 1335 02 0 58 31 41 32 46 30 29 30 71 2327600 30 44 2 62 6 11 2012 1325 72 1343 32 1306 62 1342 84 3715250000 1342 84 1 30 32 45 32 74 30 26 31 54 3239800 31 26 1 94 6 4 2012 1278 29 1329 05 1266 74 1325 66 3887776000 1325 66 3 73 32 17 33 41 31 27 32 16 2580800 31 88 0 06 5 29 2012 1318 9 1334 93 1277 25 1278 04 4050725000 1278 04 3 02 36 49 36 6 31 82 32 14 3554400 31 86 11 28 5 21 2012 1295 73 1328 49 1295 73 1317 82 3765818000 1317 82 1 74 36 37 37 01 34 45 36 23 3505500 35 91 1 44 5 14 2012 1351 93 1351 93 1291 98 1295 22 4251866000 1295 22 4 30 46 22 46 77 35 67 35 89 6231600 35 4 23 01 5 7 2012 1368 79 1373 91 1343 13 1353 39 3941332000 1353 39 1 15 50 41 50 41 45 19 46 62 2962000 45 98 7 73 4 30 2012 1403 26 1415 32 1367 96 1369 1 3833174000 1369 1 2 44 50 84 54 05 49 78 50 52 3129300 49 83 0 70 4 23 2012 1378 53 1406 64 1358 79 1403 36 3790184000 1403 36 1 80 48 36 51 3 46 98 50 88 2106000 50 18 3 72 4 16 2012 1370 27 1392 76 1365 38 1378 53 3701492000 1378 53 0 60 47 59 49 68 46 01 49 05 2171500 48 38 4 00 4 9 2012 1397 45 1397 45 1357 38 1370 26 3818638000 1370 26 1 99 49 1 49 11 46 75 47 16 1787300 46 52 5 52 4 2 2012 1408 47 1422 38 1392 92 1398 08 3659032500 1398 08 0 74 50 84 52 87 49 74 49 92 1855800 49 24 0 63 3 26 2012 1397 11 1419 15 1391 56 1408 47 3698456000 1408 47 0 81 51 72 52 03 48 92 49 61 2095900 48 93 3 17 3 19 2012 1404 17 1414 1386 87 1397 11 3682996000 1397 11 0 50 52 39 53 25 50 46 51 23 2056600 50 53 2 36 3 12 2012 1370 78 1405 88 1366 69 1404 17 4281244000 1404 17 2 43 50 67 54 1 50 35 52 47 3129300 51 75 3 29 3 5 2012 1369 59 1374 76 1340 03 1370 87 3676690000 1370 87 0 09 48 18 51 14 47 45 50 79 2656800 50 1 5 21 2 27 2012 1365 2 1378 04 1354 92 1369 63 3782622000 1369 63 0 28 47 82 48 69 45 67 48 28 3208200 47 62 0 29 2 21 2012 1361 22 1368 92 1352 28 1365 74 3680180000 1365 74 0 33 48 8 48 92 47 03 48 14 2276800 47 48 0 34 2 13 2012 1343 06 1363 4 1340 8 1361 23 3882884000 1361 23 1 38 45 35 50 44 43 41 48 48 4778300 47 64 7 56 2 6 2012 1344 32 1354 32 1335 92 1342 64 3861272000 1342 64 0 17 40 38 45 79 40 26 45 07 4189500 44 29 11 25 1 30 2012 1316 16 1345 34 1300 49 1344 9 4225678000 1344 9 2 17 46 68 47 45 40 25 40 51 6803000 39 81 14 22 1 23 2012 1315 29 1333 47 1306 06 1316 33 4080966000 1316 33 0 07 44 89 47 56 43 77 47 23 3111900 46 41 6 10 1 17 2012 1290 22 1315 49 1290 22 1315 38 4121290000 1315 38 2 04 45 46 48 02 44 4 44 51 3630100 43 74 1 06 1 9 2012 1277 83 1296 82 1274 55 1289 09 3854788000 1289 09 0 88 44 3 45 82 43 56 44 99 4016700 44 21 0 18 1 3 2012 1258 86 1284 62 1258 86 1277 81 3877267500 1277 81 1 61 49 58 50 26 44 52 44 91 2866900 44 13 8 06 12 28 2011 1265 38 1265 85 1248 64 1257 6 2299986600 1257 6 49 02 49 19 47 94 48 84 922000 48

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Question: Please answer the following questions using the data in the attached Excel file. You are thinking of investing in Abercrombie and Fitch Co. (ANF). The

Please answer the following questions using the data in the attached Excel file.

You are thinking of investing in Abercrombie and Fitch Co. (ANF). The returns for ANF are embedded in an Excel document below (Source: yahoo.com).

1. For the investment in ANF that you are considering, for all of 2012 determine the following items:

a) the mean return

b) the median return

c) the standard deviation

d) the variance

e) the coefficient of variation

The weekly rates of return for ANF stock and the overall market are embedded. Weekly returns of the markets are based on the S&P Index. Using linear regression analysis, please answer the following questions.

a) Write the equation for the relationship between ANFs stock price and the overall market. In other words, what is the estimated relationship between ANFs stock price and the overall market?

b) What percentage of the variability in ANFs stock price can be explained by the relationship to the returns of the overall market? (Note: this is a measure of the stocks market-related risk.)

c) Would you recommend using the estimated linear relationship as an estimate of the likely change in ANFs stock price given an estimate of the likely change in the S&P index? Why or why not? Be specific in your answer.

Weekly Investment Data

	S&P Index							ANF - Abercrombie & Fitch Co.
Date	Open	High	Low	Close	Volume	Adj Close	Return	Open	High	Low	Close	Volume	Adj Close	Return
12/24/2012	1430.15	1430.15	1401.8	1418.1	2121390000	1418.1	-0.84%	47.33	48.04	44.87	46.16	1608500	46.16	-2.55%
12/17/2012	1413.54	1448	1413.54	1430.15	4108678000	1430.15	1.17%	47	49.1	46.2	47.37	2724100	47.37	1.26%
12/10/2012	1418.07	1438.59	1411.88	1413.58	3383768000	1413.58	-0.32%	47.48	47.97	46.17	46.78	2844000	46.78	0.84%
12/3/2012	1416.34	1423.73	1398.23	1418.07	3386154000	1418.07	0.13%	46.03	46.63	44.79	46.39	2408200	46.39	1.09%
11/26/2012	1409.15	1419.7	1385.43	1416.18	3390836000	1416.18	0.50%	45.1	46.33	44.02	45.89	3931800	45.89	3.36%
11/19/2012	1359.88	1409.16	1359.88	1409.15	2688502500	1409.15	3.62%	41.26	44.52	41.09	44.4	3451900	44.4	9.06%
11/12/2012	1379.86	1388.81	1343.35	1359.88	3621476000	1359.88	-1.45%	31.41	42.9	30.74	40.87	11496600	40.71	29.69%
11/5/2012	1414.02	1433.38	1373.03	1379.85	3602274000	1379.85	-2.43%	32.69	34.43	31.16	31.52	2099400	31.39	-3.86%
10/31/2012	1410.99	1434.27	1405.95	1414.2	3746493300	1414.2	0.16%	30.79	33.42	30.18	32.78	2638400	32.65	7.19%
10/22/2012	1433.21	1435.46	1403.28	1411.94	3397482000	1411.94	-1.48%	31.92	32.18	30.06	30.58	1904400	30.46	-4.45%
10/15/2012	1428.75	1464.02	1427.24	1433.19	3692620000	1433.19	0.32%	33.02	33.56	31.75	32.01	2308400	31.88	-2.89%
10/8/2012	1460.93	1460.93	1425.53	1428.59	3115478000	1428.59	-2.21%	32.16	34.4	32.07	32.96	2085600	32.83	0.92%
10/1/2012	1440.9	1470.96	1439.01	1460.93	3429462000	1460.93	1.41%	33.28	34.05	32.14	32.66	1857200	32.53	-3.70%
9/24/2012	1459.76	1463.24	1430.53	1440.67	3394752000	1440.67	-1.33%	36.65	36.65	33.84	33.92	2321400	33.78	-8.03%
9/17/2012	1465.42	1467.07	1449.98	1460.15	3705514000	1460.15	-0.38%	39.09	39.25	36.65	36.88	2212700	36.73	-6.30%
9/10/2012	1437.92	1474.51	1428.98	1465.77	4004608000	1465.77	1.94%	36.4	39.65	35.1	39.36	4790200	39.2	7.90%
9/4/2012	1406.54	1437.92	1396.56	1437.92	3564977500	1437.92	2.23%	35.86	36.77	34.43	36.48	1656300	36.33	1.34%
8/27/2012	1411.13	1416.17	1397.01	1406.58	2628268000	1406.58	-0.32%	36.29	37	35.37	35.99	1585600	35.85	-0.55%
8/20/2012	1417.85	1426.68	1398.04	1411.13	2943798000	1411.13	-0.50%	35.71	37.44	34.95	36.19	2348100	36.05	1.21%
8/13/2012	1405.87	1418.71	1397.32	1418.16	2824746000	1418.16	0.87%	32.11	36.25	31.69	35.93	4546500	35.62	12.26%
8/6/2012	1391.04	1407.14	1391.04	1405.87	3182784000	1405.87	1.07%	29.38	32.29	28.91	32.01	3519500	31.73	9.00%
7/30/2012	1385.94	1394.16	1354.65	1390.99	3883892000	1390.99	0.36%	36.39	36.75	28.64	29.37	7705300	29.11	-20.09%
7/23/2012	1362.34	1389.19	1329.24	1385.97	4031190000	1385.97	1.71%	35.85	37	34.66	36.75	2309600	36.43	0.11%
7/16/2012	1356.5	1380.39	1345.07	1362.66	3608082000	1362.66	0.43%	35.42	36.97	33.77	36.71	2861100	36.39	3.47%
7/9/2012	1354.66	1361.54	1325.41	1356.78	3333824000	1356.78	0.16%	33.38	35.71	32.45	35.48	3820600	35.17	5.87%
7/2/2012	1362.33	1374.81	1348.03	1354.68	2801175000	1354.68	-0.55%	34.81	35.14	33.1	33.51	2195800	33.22	-1.83%
6/25/2012	1334.9	1362.17	1309.27	1362.16	3752304000	1362.16	2.03%	30.25	34.7	29.51	34.14	3268800	33.84	11.17%
6/18/2012	1342.42	1363.46	1324.41	1335.02	4027288000	1335.02	-0.58%	31.41	32.46	30.29	30.71	2327600	30.44	-2.62%
6/11/2012	1325.72	1343.32	1306.62	1342.84	3715250000	1342.84	1.30%	32.45	32.74	30.26	31.54	3239800	31.26	-1.94%
6/4/2012	1278.29	1329.05	1266.74	1325.66	3887776000	1325.66	3.73%	32.17	33.41	31.27	32.16	2580800	31.88	0.06%
5/29/2012	1318.9	1334.93	1277.25	1278.04	4050725000	1278.04	-3.02%	36.49	36.6	31.82	32.14	3554400	31.86	-11.28%
5/21/2012	1295.73	1328.49	1295.73	1317.82	3765818000	1317.82	1.74%	36.37	37.01	34.45	36.23	3505500	35.91	1.44%
5/14/2012	1351.93	1351.93	1291.98	1295.22	4251866000	1295.22	-4.30%	46.22	46.77	35.67	35.89	6231600	35.4	-23.01%
5/7/2012	1368.79	1373.91	1343.13	1353.39	3941332000	1353.39	-1.15%	50.41	50.41	45.19	46.62	2962000	45.98	-7.73%
4/30/2012	1403.26	1415.32	1367.96	1369.1	3833174000	1369.1	-2.44%	50.84	54.05	49.78	50.52	3129300	49.83	-0.70%
4/23/2012	1378.53	1406.64	1358.79	1403.36	3790184000	1403.36	1.80%	48.36	51.3	46.98	50.88	2106000	50.18	3.72%
4/16/2012	1370.27	1392.76	1365.38	1378.53	3701492000	1378.53	0.60%	47.59	49.68	46.01	49.05	2171500	48.38	4.00%
4/9/2012	1397.45	1397.45	1357.38	1370.26	3818638000	1370.26	-1.99%	49.1	49.11	46.75	47.16	1787300	46.52	-5.52%
4/2/2012	1408.47	1422.38	1392.92	1398.08	3659032500	1398.08	-0.74%	50.84	52.87	49.74	49.92	1855800	49.24	0.63%
3/26/2012	1397.11	1419.15	1391.56	1408.47	3698456000	1408.47	0.81%	51.72	52.03	48.92	49.61	2095900	48.93	-3.17%
3/19/2012	1404.17	1414	1386.87	1397.11	3682996000	1397.11	-0.50%	52.39	53.25	50.46	51.23	2056600	50.53	-2.36%
3/12/2012	1370.78	1405.88	1366.69	1404.17	4281244000	1404.17	2.43%	50.67	54.1	50.35	52.47	3129300	51.75	3.29%
3/5/2012	1369.59	1374.76	1340.03	1370.87	3676690000	1370.87	0.09%	48.18	51.14	47.45	50.79	2656800	50.1	5.21%
2/27/2012	1365.2	1378.04	1354.92	1369.63	3782622000	1369.63	0.28%	47.82	48.69	45.67	48.28	3208200	47.62	0.29%
2/21/2012	1361.22	1368.92	1352.28	1365.74	3680180000	1365.74	0.33%	48.8	48.92	47.03	48.14	2276800	47.48	-0.34%
2/13/2012	1343.06	1363.4	1340.8	1361.23	3882884000	1361.23	1.38%	45.35	50.44	43.41	48.48	4778300	47.64	7.56%
2/6/2012	1344.32	1354.32	1335.92	1342.64	3861272000	1342.64	-0.17%	40.38	45.79	40.26	45.07	4189500	44.29	11.25%
1/30/2012	1316.16	1345.34	1300.49	1344.9	4225678000	1344.9	2.17%	46.68	47.45	40.25	40.51	6803000	39.81	-14.22%
1/23/2012	1315.29	1333.47	1306.06	1316.33	4080966000	1316.33	0.07%	44.89	47.56	43.77	47.23	3111900	46.41	6.10%
1/17/2012	1290.22	1315.49	1290.22	1315.38	4121290000	1315.38	2.04%	45.46	48.02	44.4	44.51	3630100	43.74	-1.06%
1/9/2012	1277.83	1296.82	1274.55	1289.09	3854788000	1289.09	0.88%	44.3	45.82	43.56	44.99	4016700	44.21	0.18%
1/3/2012	1258.86	1284.62	1258.86	1277.81	3877267500	1277.81	1.61%	49.58	50.26	44.52	44.91	2866900	44.13	-8.06%
12/28/2011	1265.38	1265.85	1248.64	1257.6	2299986600	1257.6		49.02	49.19	47.94	48.84	922000	48

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