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please show with excel formulas. Q7. ( 6 pts) Export the monthly returns on the S&P 500 index from coding challenge 4 to a CSV
please show with excel formulas.
Q7. ( 6 pts) Export the monthly returns on the S\&P 500 index from coding challenge 4 to a CSV file and compute monthly average returns and standard deviation. Assume that index returns follow a normal distribution with a mean equal to the historical mean and a standard deviation equal to the historical standard deviation. Using @RISK, simulate a distribution of means with 10,000 observations and answer the following questions. (a) What is a 95% confidence interval for the simulated distribution? What does it mean to you? (b) What is the simulated distribution's monthly 1% Value at Risk (VaR)? What does it mean to you? (c) What is the monthly 1% Conditional Value at Risk (CVaR) of the simulated distribution? What does it Q7. ( 6 pts) Export the monthly returns on the S\&P 500 index from coding challenge 4 to a CSV file and compute monthly average returns and standard deviation. Assume that index returns follow a normal distribution with a mean equal to the historical mean and a standard deviation equal to the historical standard deviation. Using @RISK, simulate a distribution of means with 10,000 observations and answer the following questions. (a) What is a 95% confidence interval for the simulated distribution? What does it mean to you? (b) What is the simulated distribution's monthly 1% Value at Risk (VaR)? What does it mean to you? (c) What is the monthly 1% Conditional Value at Risk (CVaR) of the simulated distribution? What does it Step by Step Solution
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