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1.) Calculate daily HPR of each stock for the past two months, then calculate expected rate of return and standard deviation of each stock 2.)
1.) Calculate daily HPR of each stock for the past two months, then calculate expected rate of return and standard deviation of each stock
2.) Calculate correlation coefficient of these two stocks
3.) How are these two stocks correlated? Will you include these two stocks in your portfolio? Why?
please try to show work or explain your steps so i can understand it or at least just for the number 1 i kinda get the other two but thanks hopefully you guys can slove it
stock 1
Date | Open | High | Low | Close | Volume | Adj Close |
3/1/2016 | 11.63 | 13.21 | 11.37 | 12.52 | 1326200 | 12.52 |
2/1/2016 | 10.73 | 12.3 | 8.96 | 11.51 | 829800 | 11.51 |
1/4/2016 | 13.46 | 14.36 | 8.82 | 10.76 | 1179400 | 10.76 |
stock 2
Date | Open | High | Low | Close | Volume | Adj Close |
3/1/2016 | 10.6 | 12.65 | 10.24 | 12.03 | 3214400 | 12.03 |
2/1/2016 | 8.79 | 10.88 | 8.061 | 10.44 | 1675800 | 10.44 |
1/4/2016 | 12.75 | 12.9 | 8.265 | 8.77 | 1818400 | 8.77 |
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