# Obtain the closing prices of MSFT and the S&P 500 Index for the period January 1, 2017,

## Question:

Obtain the closing prices of MSFT and the S\&P 500 Index for the period January 1, 2017, through December 31, 2017, and compute the daily log returns for this period.

**(a)** Compute and plot the ACFs of the returns of MSFT and of the S\&P 500 Index for this period.

**(b)** Test the hypothesis that the ACF of MSFT daily returns is 0 at all lags. (A statistical test does not consist of just computing a p-value; state and interpret your results.)

Test the hypothesis that the ACF of S\&P 500 returns is 0 at all lags. State and interpret your results.

You are given very few guidelines in either case. It is a part of the exercise to make some decisions.

**(c)** Compute and plot the CCFs of the returns of MSFT and of the S\&P 500 Index for this period.

## Step by Step Answer:

**Related Book For**