Question
Date GOOG_Close_Price ALXN_Close_Price SNP_Close_Price 12/27/2016 $792.45 $122.35 $2,238.83 12/19/2016 $807.80 $127.19 $2,263.79 12/12/2016 $809.84 $120.04 $2,258.07 12/5/2016 $809.45 $132.07 $2,259.53 11/28/2016 $764.46 $122.96 $2,191.95 11/21/2016
Date GOOG_Close_Price ALXN_Close_Price SNP_Close_Price 12/27/2016 $792.45 $122.35 $2,238.83 12/19/2016 $807.80 $127.19 $2,263.79 12/12/2016 $809.84 $120.04 $2,258.07 12/5/2016 $809.45 $132.07 $2,259.53 11/28/2016 $764.46 $122.96 $2,191.95 11/21/2016 $780.23 $118.83 $2,213.35 11/14/2016 $775.97 $119.85 $2,181.90 11/7/2016 $771.75 $113.62 $2,164.45 10/31/2016 $781.10 $129.00 $2,085.18 10/24/2016 $819.56 $135.59 $2,126.41 10/17/2016 $824.06 $120.26 $2,141.16 10/10/2016 $804.60 $118.34 $2,132.98 10/3/2016 $800.71 $125.05 $2,153.74 9/26/2016 $804.06 $122.54 $2,168.27 9/19/2016 $814.96 $127.22 $2,164.69 9/12/2016 $797.97 $131.46 $2,139.16 9/6/2016 $788.48 $124.92 $2,127.81 8/29/2016 $796.87 $123.67 $2,179.98 8/22/2016 $793.22 $129.63 $2,169.04 8/15/2016 $799.65 $132.14 $2,183.87 8/8/2016 $807.05 $133.44 $2,184.05 8/1/2016 $806.93 $137.11 $2,182.87 7/25/2016 $791.34 $128.60 $2,173.60 7/18/2016 $759.28 $125.80 $2,175.03 7/11/2016 $735.63 $125.58 $2,161.74 7/5/2016 $717.78 $124.42 $2,129.90 6/27/2016 $710.25 $118.59 $2,102.95 6/20/2016 $685.20 $112.99 $2,037.41 6/13/2016 $704.25 $125.20 $2,071.22 6/6/2016 $733.19 $135.61 $2,096.07 5/31/2016 $735.86 $153.89 $2,099.13 5/23/2016 $747.60 $150.42 $2,099.06 5/16/2016 $721.71 $142.52 $2,052.32 5/9/2016 $724.83 $139.74 $2,046.61 5/2/2016 $725.18 $140.99 $2,057.14 4/25/2016 $707.88 $139.28 $2,065.30 4/18/2016 $737.77 $159.10 $2,091.58 4/11/2016 $780.00 $153.09 $2,080.73 4/4/2016 $759.47 $148.89 $2,047.60 3/28/2016 $769.67 $142.94 $2,072.78 3/21/2016 $754.84 $133.19 $2,035.94 3/14/2016 $755.41 $128.45 $2,049.58 3/7/2016 $744.87 $139.27 $2,022.19 2/29/2016 $730.22 $144.46 $1,999.99 2/22/2016 $724.86 $140.16 $1,948.05 2/16/2016 $722.11 $145.89 $1,917.78 2/8/2016 $706.89 $141.11 $1,864.78 2/1/2016 $703.76 $142.28 $1,880.05 1/25/2016 $761.35 $145.93 $1,940.24 1/19/2016 $745.46 $159.15 $1,906.90 1/11/2016 $710.49 $158.68 $1,880.33 1/4/2016 $730.91 $168.13 $1,922.03 12/28/2015 $778.01 $190.75 $2,043.94 12/21/2015 $765.84 $189.41 $2,060.99 12/14/2015 $756.85 $182.13 $2,005.55 12/7/2015 $750.42 $188.06 $2,012.37 11/30/2015 $779.21 $175.76 $2,091.69 11/23/2015 $771.97 $182.46 $2,090.11 11/16/2015 $777.00 $173.59 $2,089.17 11/9/2015 $740.07 $166.44 $2,023.04 11/2/2015 $761.60 $172.15 $2,099.20 10/26/2015 $737.39 $176.00 $2,079.36 10/19/2015 $719.33 $171.16 $2,075.15 10/12/2015 $695.32 $160.72 $2,033.11 10/5/2015 $671.24 $161.08 $2,014.89 9/28/2015 $656.99 $166.07 $1,951.36 9/21/2015 $640.15 $149.25 $1,931.34 9/14/2015 $660.92 $166.58 $1,958.03 9/8/2015 $655.30 $171.93 $1,961.05 8/31/2015 $628.96 $171.98 $1,921.22 8/24/2015 $659.69 $178.86 $1,988.87 8/17/2015 $644.03 $173.81 $1,970.89 8/10/2015 $689.37 $186.58 $2,091.54 8/3/2015 $664.39 $189.62 $2,077.57 7/27/2015 $657.50 $197.44 $2,103.84 7/20/2015 $654.77 $200.99 $2,079.65 7/13/2015 $699.62 $204.30 $2,126.64 7/6/2015 $556.11 $192.53 $2,076.62 6/29/2015 $547.34 $185.22 $2,076.78 6/22/2015 $553.06 $184.45 $2,101.49 6/15/2015 $557.52 $184.40 $2,109.99 6/8/2015 $547.47 $169.04 $2,094.11 6/1/2015 $549.53 $160.26 $2,092.83 5/26/2015 $545.32 $163.84 $2,107.39 5/18/2015 $554.52 $171.94 $2,126.06 5/11/2015 $546.49 $160.56 $2,122.73 5/4/2015 $548.95 $163.02 $2,116.10 4/27/2015 $551.16 $172.50 $2,108.29 4/20/2015 $573.66 $180.08 $2,117.69 4/13/2015 $532.74 $181.34 $2,081.18 4/6/2015 $548.54 $182.68 $2,102.06 3/30/2015 $541.31 $169.94 $2,066.96 3/23/2015 $557.55 $180.59 $2,061.02 3/16/2015 $564.95 $187.71 $2,108.10 3/9/2015 $553.00 $176.89 $2,053.40 3/2/2015 $572.90 $181.65 $2,071.26 2/23/2015 $562.63 $180.37 $2,104.50 2/17/2015 $541.80 $186.02 $2,110.30 2/9/2015 $551.16 $182.29 $2,096.99 2/2/2015 $533.88 $175.63 $2,055.47 1/26/2015 $537.55 $183.24 $1,994.99 1/20/2015 $541.95 $183.32 $2,051.82 1/12/2015 $510.46 $180.44 $2,019.42 1/5/2015 $500.72 $184.27 $2,044.81 1/2/2015 $529.55 $186.60 $2,058.20
Date | GOOG_Close_Price | ALXN_Close_Price | SNP_Close_Price |
12/27/2016 | $792.45 | $122.35 | $2,238.83 |
12/19/2016 | $807.80 | $127.19 | $2,263.79 |
12/12/2016 | $809.84 | $120.04 | $2,258.07 |
12/5/2016 | $809.45 | $132.07 | $2,259.53 |
11/28/2016 | $764.46 | $122.96 | $2,191.95 |
11/21/2016 | $780.23 | $118.83 | $2,213.35 |
11/14/2016 | $775.97 | $119.85 | $2,181.90 |
11/7/2016 | $771.75 | $113.62 | $2,164.45 |
10/31/2016 | $781.10 | $129.00 | $2,085.18 |
10/24/2016 | $819.56 | $135.59 | $2,126.41 |
10/17/2016 | $824.06 | $120.26 | $2,141.16 |
10/10/2016 | $804.60 | $118.34 | $2,132.98 |
10/3/2016 | $800.71 | $125.05 | $2,153.74 |
9/26/2016 | $804.06 | $122.54 | $2,168.27 |
9/19/2016 | $814.96 | $127.22 | $2,164.69 |
9/12/2016 | $797.97 | $131.46 | $2,139.16 |
9/6/2016 | $788.48 | $124.92 | $2,127.81 |
8/29/2016 | $796.87 | $123.67 | $2,179.98 |
8/22/2016 | $793.22 | $129.63 | $2,169.04 |
8/15/2016 | $799.65 | $132.14 | $2,183.87 |
8/8/2016 | $807.05 | $133.44 | $2,184.05 |
8/1/2016 | $806.93 | $137.11 | $2,182.87 |
7/25/2016 | $791.34 | $128.60 | $2,173.60 |
7/18/2016 | $759.28 | $125.80 | $2,175.03 |
7/11/2016 | $735.63 | $125.58 | $2,161.74 |
7/5/2016 | $717.78 | $124.42 | $2,129.90 |
6/27/2016 | $710.25 | $118.59 | $2,102.95 |
6/20/2016 | $685.20 | $112.99 | $2,037.41 |
6/13/2016 | $704.25 | $125.20 | $2,071.22 |
6/6/2016 | $733.19 | $135.61 | $2,096.07 |
5/31/2016 | $735.86 | $153.89 | $2,099.13 |
5/23/2016 | $747.60 | $150.42 | $2,099.06 |
5/16/2016 | $721.71 | $142.52 | $2,052.32 |
5/9/2016 | $724.83 | $139.74 | $2,046.61 |
5/2/2016 | $725.18 | $140.99 | $2,057.14 |
4/25/2016 | $707.88 | $139.28 | $2,065.30 |
4/18/2016 | $737.77 | $159.10 | $2,091.58 |
4/11/2016 | $780.00 | $153.09 | $2,080.73 |
4/4/2016 | $759.47 | $148.89 | $2,047.60 |
3/28/2016 | $769.67 | $142.94 | $2,072.78 |
3/21/2016 | $754.84 | $133.19 | $2,035.94 |
3/14/2016 | $755.41 | $128.45 | $2,049.58 |
3/7/2016 | $744.87 | $139.27 | $2,022.19 |
2/29/2016 | $730.22 | $144.46 | $1,999.99 |
2/22/2016 | $724.86 | $140.16 | $1,948.05 |
2/16/2016 | $722.11 | $145.89 | $1,917.78 |
2/8/2016 | $706.89 | $141.11 | $1,864.78 |
2/1/2016 | $703.76 | $142.28 | $1,880.05 |
1/25/2016 | $761.35 | $145.93 | $1,940.24 |
1/19/2016 | $745.46 | $159.15 | $1,906.90 |
1/11/2016 | $710.49 | $158.68 | $1,880.33 |
1/4/2016 | $730.91 | $168.13 | $1,922.03 |
12/28/2015 | $778.01 | $190.75 | $2,043.94 |
12/21/2015 | $765.84 | $189.41 | $2,060.99 |
12/14/2015 | $756.85 | $182.13 | $2,005.55 |
12/7/2015 | $750.42 | $188.06 | $2,012.37 |
11/30/2015 | $779.21 | $175.76 | $2,091.69 |
11/23/2015 | $771.97 | $182.46 | $2,090.11 |
11/16/2015 | $777.00 | $173.59 | $2,089.17 |
11/9/2015 | $740.07 | $166.44 | $2,023.04 |
11/2/2015 | $761.60 | $172.15 | $2,099.20 |
10/26/2015 | $737.39 | $176.00 | $2,079.36 |
10/19/2015 | $719.33 | $171.16 | $2,075.15 |
10/12/2015 | $695.32 | $160.72 | $2,033.11 |
10/5/2015 | $671.24 | $161.08 | $2,014.89 |
9/28/2015 | $656.99 | $166.07 | $1,951.36 |
9/21/2015 | $640.15 | $149.25 | $1,931.34 |
9/14/2015 | $660.92 | $166.58 | $1,958.03 |
9/8/2015 | $655.30 | $171.93 | $1,961.05 |
8/31/2015 | $628.96 | $171.98 | $1,921.22 |
8/24/2015 | $659.69 | $178.86 | $1,988.87 |
8/17/2015 | $644.03 | $173.81 | $1,970.89 |
8/10/2015 | $689.37 | $186.58 | $2,091.54 |
8/3/2015 | $664.39 | $189.62 | $2,077.57 |
7/27/2015 | $657.50 | $197.44 | $2,103.84 |
7/20/2015 | $654.77 | $200.99 | $2,079.65 |
7/13/2015 | $699.62 | $204.30 | $2,126.64 |
7/6/2015 | $556.11 | $192.53 | $2,076.62 |
6/29/2015 | $547.34 | $185.22 | $2,076.78 |
6/22/2015 | $553.06 | $184.45 | $2,101.49 |
6/15/2015 | $557.52 | $184.40 | $2,109.99 |
6/8/2015 | $547.47 | $169.04 | $2,094.11 |
6/1/2015 | $549.53 | $160.26 | $2,092.83 |
5/26/2015 | $545.32 | $163.84 | $2,107.39 |
5/18/2015 | $554.52 | $171.94 | $2,126.06 |
5/11/2015 | $546.49 | $160.56 | $2,122.73 |
5/4/2015 | $548.95 | $163.02 | $2,116.10 |
4/27/2015 | $551.16 | $172.50 | $2,108.29 |
4/20/2015 | $573.66 | $180.08 | $2,117.69 |
4/13/2015 | $532.74 | $181.34 | $2,081.18 |
4/6/2015 | $548.54 | $182.68 | $2,102.06 |
3/30/2015 | $541.31 | $169.94 | $2,066.96 |
3/23/2015 | $557.55 | $180.59 | $2,061.02 |
3/16/2015 | $564.95 | $187.71 | $2,108.10 |
3/9/2015 | $553.00 | $176.89 | $2,053.40 |
3/2/2015 | $572.90 | $181.65 | $2,071.26 |
2/23/2015 | $562.63 | $180.37 | $2,104.50 |
2/17/2015 | $541.80 | $186.02 | $2,110.30 |
2/9/2015 | $551.16 | $182.29 | $2,096.99 |
2/2/2015 | $533.88 | $175.63 | $2,055.47 |
1/26/2015 | $537.55 | $183.24 | $1,994.99 |
1/20/2015 | $541.95 | $183.32 | $2,051.82 |
1/12/2015 | $510.46 | $180.44 | $2,019.42 |
1/5/2015 | $500.72 | $184.27 | $2,044.81 |
1/2/2015 | $529.55 | $186.60 | $2,058.20 |
1. Calculate weekly returns. a. You will first need to compute the weekly returns on both Google & Alexion stocks and the S&P index. Use the following formula to calculate the % weekly return of the two stocks and the S&P Market index. (% weekly return = 100)
2. Correlation between weekly stock returns and market returns a. What is the correlation between Google Stock returns and the market (S&P 500) returns? Is the correlation significant? Provide statistical justification. b. What is the correlation between ALXN Weekly returns and the market (S&P 500) returns? Is the correlation significant? Provide statistical justification.
3. Run Regression model to estimate the beta of each stock a. A regression model to predict Google weekly stock returns based on S&P weekly Stock returns. i. What is the beta of Google? Interpret its meaning. ii. Construct a 95% confidence interval estimate of Google's beta. Interpret its meaning. b. Run a regression model to predict ALXN weekly stock returns based on S&P weekly Stock returns. i. What is the beta of ALXN? Interpret its meaning. ii. Construct a 95% confidence interval estimate of ALXN's beta. Interpret its meaning.
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