Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock trader suspects that the share price (in S$) of Koko Ltd is affected by the volatility index (VIX). As such, he observed the
A stock trader suspects that the share price (in S$) of Koko Ltd is affected by the volatility index (VIX). As such, he observed the share price of Koko Lid and VIX for five trading days and recorded the data. Month VIX (X) Koko Ltd (Y) 1 15.5 2.1 2 16.1 2.3 3 15.3 2.4 4 16.8 2.8 5 17.2 2.2 a) Determine the linear regression equation. (10 marks) b) (i) If the VIX is 16.3, what is the share price of Koko Ltd? (3 marks) (ii) If the VIX is 40.5, what is the share price of Koko Ltd? (2 marks) c) Determine the correlation coefficient and interpret the result
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