QUESTION 6

Use the monthly data (September 2013 - November 2014) provided on the closing prices for Gold (GLD), NASDAQ, Oil (USO) and Facebook (FB).

Date	GLD	NASDAQ	USO	FB
Sep-13	128	3771	37	50
Oct-13	128	3920	35	50
Nov-13	121	4060	33	47
Dec-13	116	4177	35	55
Jan-14	120	4104	35	63
Feb-14	128	4308	37	68
Mar-14	124	4199	37	60
Apr-14	124	4115	36	60
May-14	120	4243	38	63
Jun-14	128	4408	39	67
Jul-14	123	4370	36	73
Aug-14	124	4580	36	75
Sep-14	116	4493	34	79
Oct-14	113	4631	31	75
Nov-14	115	4713	29	74

What is the mean monthly return for GLD during the sample period?

		3.12%
		1.64%
		-1.60%
		-0.68%

5 points

QUESTION 7

Use the monthly data (September 2013 - November 2014) provided on the closing prices for Gold (GLD), NASDAQ, Oil (USO) and Facebook (FB).

Date	GLD	NASDAQ	USO	FB
Sep-13	128	3771	37	50
Oct-13	128	3920	35	50
Nov-13	121	4060	33	47
Dec-13	116	4177	35	55
Jan-14	120	4104	35	63
Feb-14	128	4308	37	68
Mar-14	124	4199	37	60
Apr-14	124	4115	36	60
May-14	120	4243	38	63
Jun-14	128	4408	39	67
Jul-14	123	4370	36	73
Aug-14	124	4580	36	75
Sep-14	116	4493	34	79
Oct-14	113	4631	31	75
Nov-14	115	4713	29	74

What is the risk as measured by the standard deviation of monthly return for Facebook during the sample period?

		4.20%
		2.80%
		7.90%
		5.19%

5 points

QUESTION 8

Use the monthly data (September 2013 - November 2014) provided on the closing prices for Gold (GLD), NASDAQ, Oil (USO) and Facebook (FB).

Date	GLD	NASDAQ	USO	FB
Sep-13	128	3771	37	50
Oct-13	128	3920	35	50
Nov-13	121	4060	33	47
Dec-13	116	4177	35	55
Jan-14	120	4104	35	63
Feb-14	128	4308	37	68
Mar-14	124	4199	37	60
Apr-14	124	4115	36	60
May-14	120	4243	38	63
Jun-14	128	4408	39	67
Jul-14	123	4370	36	73
Aug-14	124	4580	36	75
Sep-14	116	4493	34	79
Oct-14	113	4631	31	75
Nov-14	115	4713	29	74

What is the correlation between prices of Gold and NASDAQ during the sample period?

		0.73
		-0.40
		-0.54
		-0.44

5 points

QUESTION 9

Use the monthly data (September 2013 - November 2014) provided on the closing prices for Gold (GLD), NASDAQ, Oil (USO) and Facebook (FB).

Date	GLD	NASDAQ	USO	FB
Sep-13	128	3771	37	50
Oct-13	128	3920	35	50
Nov-13	121	4060	33	47
Dec-13	116	4177	35	55
Jan-14	120	4104	35	63
Feb-14	128	4308	37	68
Mar-14	124	4199	37	60
Apr-14	124	4115	36	60
May-14	120	4243	38	63
Jun-14	128	4408	39	67
Jul-14	123	4370	36	73
Aug-14	124	4580	36	75
Sep-14	116	4493	34	79
Oct-14	113	4631	31	75
Nov-14	115	4713	29	74

What is the approximate value of mean absolute error (MAE) of forecasting based on 3 days moving average for Facebook prices?

		4.56
		4.10
		5.89
		6.08

5 points

QUESTION 10

Use the monthly data (September 2013 - November 2014) provided on the closing prices for Gold (GLD), NASDAQ, Oil (USO) and Facebook (FB).

Date	GLD	NASDAQ	USO	FB
Sep-13	128	3771	37	50
Oct-13	128	3920	35	50
Nov-13	121	4060	33	47
Dec-13	116	4177	35	55
Jan-14	120	4104	35	63
Feb-14	128	4308	37	68
Mar-14	124	4199	37	60
Apr-14	124	4115	36	60
May-14	120	4243	38	63
Jun-14	128	4408	39	67
Jul-14	123	4370	36	73
Aug-14	124	4580	36	75
Sep-14	116	4493	34	79
Oct-14	113	4631	31	75
Nov-14	115	4713	29	74

What is the approximate value of mean absolute percantage error (MAPE) of forecasting based on 3 days moving average for NASDAQ prices?

		5.87%
		3.87%
		7.94%
		2.93%