Question: Q 2 : ( 1 5 points ) The data file assignment _ 1 . txt contains stock returns for ge ( General Electric )

Q2: (15 points) The data file assignment_1.txt contains stock returns for ge(General
Electric),vw(value-weighted market returns),ew(equal- weighted market
returns), and sp(Standard Poor composite index). The time span of the data
ranges from Jan 1940 to Sept 2011. Please do following work within R/RStudio
environment: (a) Compute the sample mean, standard deviation, skewness, excess
kurtosis, minimum, and maximum of each simple return series. (b) Transform the
simple returns to log returns and redo part (a).(c) Test the null hypothesis that the
mean of the log returns of ge stock is zero. Use 5% significance level to draw your
conclusion.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Databases Questions!