Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. The weekly rates of return for five stocks were recorded for the period January 1995 through March 1995. The data provided here are
1. The weekly rates of return for five stocks were recorded for the period January 1995 through March 1995. The data provided here are for 16 weekly rates of return. The stocks observed are Allied Chemical, Dow Chemical, Union Chemical, the Standard Oil Company, and Texas oil. Data can be found in the file stocks.csv. (a) Calculate the mean and standard deviation for each variable. (b) Calculate the correlation structure between and within the chem- ical companies and the oil companies. (c) State the hypotheses and test for the significance of the canonical correlations. (d) Give the values of the significant canonical correlations and the squared canonical correlations. Interpret the squared canonical correlations in the context of the problem. (e) Write the equations of the significant canonical variables. Com- ment on their relative importance of the original variables to the canonical variables. (f) Comment and interpret the redundancy analysis.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started