Go to http://finance.yahoo.com/, enter the symbol WFC (Wells Fargo Bank), and click on Get Quotes. Retrieve stock
Question:
Go to http://finance.yahoo.com/, enter the symbol WFC (Wells Fargo Bank), and click on “Get Quotes.” Retrieve stock price data at the beginning of the last 20 quarters. Then go to http://research.stlouisfed.org/fred2/and retrieve interest rate data at the beginning of the last 20 quarters for the three-month Treasury bill. Record the data on an Excel spreadsheet. Derive the quarterly return of Wells Fargo Bank. Derive the quarterly change in the interest rate. Apply regression analysis in which the quarterly return of Wells Fargo Bank is the dependent variable and the quarterly change in the interest rate is the independent variable (see Appendix B for more information about using regression analysis). Is there a positive or negative relationship between the interest rate movement and the return of Wells Fargo Bank stock? Is the relationship significant? Offer an explanation for this relationship.
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