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Statistics for Business and Financial (pdf)

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Added on  2021-06-17

Statistics for Business and Financial (pdf)

   Added on 2021-06-17

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Running head: STATISTICS FOR FINANCE AND BUSINESSStatistics for Finance and BusinessName of the Student:Name of the University:Author Note:
Statistics for Business and Financial (pdf)_1
1SFFBSTATISTICS FOR FINANCE AND BUSINESSTable of ContentsIntroduction......................................................................................................................................2Task A..............................................................................................................................................2Task B..............................................................................................................................................2Question 1........................................................................................................................................2Question 2........................................................................................................................................7Question 3........................................................................................................................................8Question 4........................................................................................................................................9Question 5......................................................................................................................................10Part a..........................................................................................................................................10Part b..........................................................................................................................................11Part c..........................................................................................................................................12Part d..........................................................................................................................................12Question 6......................................................................................................................................13Question 7......................................................................................................................................13Conclusion.....................................................................................................................................15
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2SFFBSTATISTICS FOR FINANCE AND BUSINESSIntroduction Investment analysis and the interpretation of performance of one stock better than other can beanalysed based on the risk relativity and its risk and return relationship. The analysis in thisreport will carry out quantitative techniques like hypothesis testing and sample estimation topresent the performance of two stocks. The study will primarily deal with two stocks that areBoeing Company and General Dynamics. With the calculation of CAPM model and risk andreturn relationship, S&P 500 Price Index and Interest rate on 10 Year US-Treasury Note willeven be used. The data period is identified on roll number and it would be from 1st July 2012 to1st July 2017, in which closing prices are considered. However, with use of these stocksinvestment decision would be made.Task AThe major two stocks have been considered that is Boeing Company and General Dynamics andother two stocks like S&P 500 Price Index and Interest rate on 10 Year US-Treasury Note andhad been downloaded from the yahoo finance from 1st July 2012 to 1st July 2017. Task BQuestion 1The time line for all the returns of respective stocks has been given below.050100150200250Closing Stock Prices of Boeing CompanyTime LinePricesFigure 1: Closing stock prices of Boeing Company
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3SFFBSTATISTICS FOR FINANCE AND BUSINESS050100150200250Closing Stock Prices of General DynamicsTimeLinePriceFigure 2: Closing stock prices of General Dynamics050010001500200025003000Closing Stock Prices of S&P 500TimeLinePriceFigure 3: Closing stock prices of S&P 500Returns ComputationFurther, the returns are calculated for each stock with the formula as “rt= 100*ln(Pt/ Pt-1)“ and such as we get sample of 60 for each stock. The same has been given in the table below.ReturnsBA (rtBA)General Dynamics (rtGD)S&P 500 (rtGSPC)-0.52628-3.895391.25189-3.455033.210831.95706
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