1. Plot the two series on the same chart (using appropriate transformations).
2. Compute the annualized geometric average return and standard deviation for the two series.

1. Compute the rolling year-on-year (yoy) returns.Plot these two yoy returns series as well as the difference between the two.

1. Regress the yoy Momentum on his first lag and the yoy Market and test for the significance of the coefficients. Conclusions?

1. Find the best model and compute an estimation of the yoy momentum return as well as a 95% confidence interval if the previous observation is 5%. Compare the results with the ones found in class.