Question: The table shows monthly returns for a value weighted stock index for month (t) and month (t-1). What is the correlation between the return for

The table shows monthly returns for a value weighted stock index for month (t) and month (t-1). What is the correlation between the return for month (t) and the return for month (t-1)? Round to 2 decimal places. Date Ret (t) Ret (t-1) 20160129 -0.057035 -0.022257 20160229 0.000682 -0.057035 20160331 0.07046 0.000682 20160429 0.011799 0.07046 20160531 0.014296 0.011799 20160630 0.003123 0.014296 20160729 0.03874 0.003123 20160831 0.002787 0.03874 20160930 0.003016 0.002787 20161031 -0.02159 0.003016 20161130 0.040415 -0.02159 20161230 0.018775 0.040415

Step by Step Solution

3.47 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To find the correlation between the return for month t and the return for month t1 we can use the fo... View full answer

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 Accounting Questions!