Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the most appropriate type of graph to present weekly closing price of the Bitcoin and provide a general description. Hint: What are the main

Using the most appropriate type of graph to present weekly closing price of the Bitcoin and provide a general description. Hint: What are the main features of this graph, is there a trend? 

Calculate the weekly return and construct a histogram. Does the data appear normally distributed? Is there evidence of outliers? Hint: the formula for a return is (Current Price – Previous price)/Previous price multiplied by 100

Calculate and interpret the three aspects of Descriptive Analysis, Location, Shape and Spread, for weekly return. 

What is the empirical probability of a loss? 

Repeat the same steps (steps 1-4 above) for three share prices in the Australia Securities Exchange: BHP Billiton (BHP) from the mining sector, Commonwealth Bank of Australia (CBA) from the bank sector, and Telstra Corporation (TLS) from the telecom sector.

Construct a 95% confidence interval of the return to Bitcoin, and interpret the interval. How does your interval change if the level of confidence is 90% and 95% respectively, and explain why. 

Construct a 95% confidence interval of the return to BHP, CBA, and TLS respectively. 

An investment advisor claimed that the return to Bitcoin is 4% while the returns to other three shares are no different from zero. Do you agree? Justify your reasoning using a two-tailed hypothesis test approach at the significance level of 5%. 

Data source: Yahoo Finance
Data frequency: weekly closing price
Data measurement unit: AU$
Short NameFull Name
BITBitcoin
BHPBHP Billiton
CBACommonwealth Bank of Australia
TLSTelstra Corporation
DateBITCBABHPTLS
15/6/1469080.981233.59325.17
22/6/1466581.03134.03245.26
29/6/14661.281.508435.1075.34
6/7/14692.1480.792335.11635.33
13/7/14614.1280.83235.87325.43
20/7/14600.8481.836636.44325.45
27/7/14665.9382.373735.89195.44
3/8/14687.7679.698235.26585.39
10/8/14584.9780.762436.48995.58
17/8/1454380.175635.32195.71
24/8/14510.5380.881834.2665.56
31/8/14537.9280.861933.31285.64
7/9/14562.4379.797733.44375.54
14/9/14424.4477.390733.1545.41
21/9/14460.1574.854431.92055.31
28/9/14353.3676.23731.25715.39
5/10/14481.6474.396930.19185.29
12/10/14485.5576.127531.21035.38
19/10/14449.9878.345531.5285.5
27/10/14419.980.046331.73365.63
3/11/14440.9882.31432.22895.77
10/11/14463.9681.329431.07025.8
17/11/14448.0979.658429.62185.65
24/11/14471.580.28528.89295.69
1/12/1447681.200128.42575.67
8/12/14419.5581.299526.59425.7
15/12/14434.9783.258927.08015.89
22/12/14443.4684.462427.07085.91
29/12/14362.885.27827.60345.97
5/1/15350.0985.576327.24836.07
12/1/15290.0283.119725.27666.22
19/1/15480.5185.765327.45396.34
26/1/15289.4888.848627.34186.5
2/2/15309.5992.47929.48166.59
9/2/15323.992.64830.0616.59
16/2/15323.589.723930.18256.61
23/2/15354.8591.424731.4446.37
2/3/15351.3490.599130.50026.28
9/3/15405.8690.827927.8096.2
16/3/15349.8295.800928.65936.37
23/3/1538093.831628.73416.38
29/3/15320.5693.891328.23886.32
5/4/15379.9493.622728.16416.28
12/4/1536591.583828.00526.14
19/4/1530091.603729.94896.32
26/4/15324.6888.440830.36946.24
3/5/15295.9182.194729.2486.17
10/5/15345.0384.293330.366.2
17/5/15327.3682.662129.256.2
24/5/15369.6984.631529.596.22
31/5/15328.879.857327.96.01
7/6/15320.580.981227.96.03
14/6/15312.8784.014828.416.13
21/6/15325.6286.183127.56.2
28/6/15362.1886.19326.596.13
5/7/15443.5885.327726.656.21
12/7/15412.1587.505927.16.42
19/7/15401.9685.347625.276.36
26/7/1541587.088226.456.49
2/8/15362.0480.861925.936.29
9/8/15329.0881.677525.326.08
16/8/15357.5375.5924.16.07
23/8/15320.476.3625.495.82
30/8/15349.4672.1524.695.61
6/9/15330.875.1323.715.55
13/9/15323.2775.8324.465.65
20/9/15346.4871.4422.935.67
27/9/15350.6673.3922.65.62
4/10/15339.5975.5325.65.64
11/10/15373.5376.55255.44
18/10/15400.0177.3524.595.58
26/10/15477.6976.7323.025.4
2/11/15551.3976.5922.75.31
9/11/15471.7975.7620.235.14
16/11/15476.8979.8320.55.41
23/11/15518.3980.1218.775.4
30/11/15540.5880.2217.935.41
7/12/15605.4678.9517.25.2
14/12/15616.2481.5716.875.48
21/12/15581.2183.3218.345.46
28/12/15582.3885.5317.865.61
4/1/16642.279.4216.355.3
11/1/16554.2878.8815.075.33
18/1/16573.9276.5615.265.54
25/1/16532.5878.6715.355.63
1/2/16529.3976.616.25.65
8/2/16567.0573.3315.095.57
15/2/16609.6173.4316.615.28
22/2/16606.6870.7215.595.27
29/2/16548.0775.7417.675.13
7/3/16543.6976.3717.615.16
14/3/16584.5878.1618.15.22
21/3/16589.9774.82175.25
27/3/16585.8272.9916.975.26
3/4/16555.6670.7616.185.16
10/4/16574.937519.285.24
17/4/16616.1975.0420.365.4
24/4/16588.2873.8920.685.36
1/5/16655.8774.3518.465.6
8/5/16642.6777.3918.25.68
15/5/16612.7578.1218.855.66
22/5/16701.2778.919.375.67
29/5/16788.6975.7518.535.59
5/6/16903.0975.4918.85.46
12/6/161053.0572.0318.085.31
19/6/16905.6572.5717.545.35
26/6/16897.0873.8319.095.58
3/7/16871.5472.4119.055.59
10/7/16895.0175.9420.375.75
17/7/16893.5277.1419.35.8
24/7/16823.1877.3519.525.77
31/7/16787.9376.1520.035.66
7/8/16750.576.0120.685.45
14/8/1676073.4521.295.48
21/8/1677073.2620.885.3
28/8/16815.670.9119.855.12
4/9/1681470.8720.785.06
11/9/16834.9972.2420.095.1
18/9/16786.273.421.535.19
25/9/16819.4272.422.385.18
2/10/16815.5774.3823.35.01
9/10/1685474.5822.545.08
16/10/16861.0274.923.045.04
23/10/1692572.7522.984.95
31/10/16925.8370.9922.274.9
7/11/16931.975.7824.944.72
14/11/161000.5276.8624.14.93
21/11/161002.9778.1726.55.03
28/11/161024.2778.625.024.95
5/12/161075.280.6725.984.99
12/12/161106.281.06254.91
19/12/161235.9482.524.635.04
26/12/161381.482.4125.065.1
2/1/171244.4184.1325.55.26
9/1/171095.1683.8626.335.22
16/1/171223.281.5826.355.14
23/1/171238.3482.9827.525.11
30/1/171347.7481.6826.25.08
6/2/171341.4882.925.885.16
13/2/171375.9585.3926.644.84
20/2/171553.4683.0225.064.81
27/2/171690.2783.225.344.59
6/3/171649.184.523.674.64
13/3/171362.2784.7724.844.76
20/3/171277.6183.3824.264.59
26/3/171472.8885.9124.044.66
2/4/171612.8384.7724.594.56
9/4/171588.7586.2524.314.16
16/4/171683.4685.6424.044.23
23/4/171781.7187.423.724.22
30/4/172196.6784.422.624.4
7/5/172595.0781.6723.754.36
14/5/172860.8580.2324.284.43
21/5/173094.7980.1424.014.48
28/5/173493.2780.3824.074.49
4/6/173889.4679.1923.544.37
11/6/173588.8681.8622.994.38
18/6/173503.3181.2522.414.35
25/6/173342.7682.8123.284.3
2/7/173415.5182.1324.594.32
9/7/17251083.1225.134.3
16/7/173541.583.9724.494.1
23/7/173529.7483.7625.334.11
30/7/174060.5380.7225.724.07
6/8/175318.1480.525.554.15
13/8/175298.7679.0925.393.9
20/8/17562077.7226.683.92
27/8/176018.475.4827.423.67
3/9/175319.4673.2427.293.7
10/9/174593.0576.2826.263.65
17/9/174625.3876.6225.953.58
24/9/175565.3675.2525.783.49
1/10/175887.3576.326.613.44
8/10/177226.7676.6626.363.52
15/10/177713.9378.9726.683.52
22/10/178018.6578.2426.593.55
30/10/179692.3977.7927.693.5
6/11/177924.8980.8528.073.46
13/11/1710693.5580.9227.123.45
20/11/1712297.9980.5727.973.48
27/11/1715024.1979.1727.583.42
4/12/1721184.8779.6227.173.69
11/12/1725986.5579.9427.713.69
18/12/1718939.7980.3929.13.66
25/12/1719050.7480.3429.573.63
1/1/1822862.2181.1630.583.73
8/1/1819041.5180.8831.533.74
15/1/1815148.3779.8330.693.57
22/1/1814445.1278.6530.853.56
29/1/1810225.8280.7930.813.67
5/2/1810382.7276.2529.133.49
12/2/1813338.4574.0231.523.43
19/2/1812300.7275.4630.683.48
26/2/1814763.9475.7329.633.27
5/3/1812143.7376.8728.323.44
12/3/1810646.8875.3429.163.35
19/3/1811039.1972.8128.773.22
25/3/188835.9872.3128.213.14
1/4/189130.3973.4928.643.1
8/4/1810654.3273.1629.733.1
15/4/1811357.2172.0630.863.08
22/4/1812432.7671.5431.113.15
29/4/1812682.6272.7631.493.24
6/5/1811560.0370.5333.163.2
13/5/1811318.4670.534.082.85
20/5/189752.0269.8733.072.87
27/5/1810233.168.733.082.78
3/6/188956.3169.3734.072.77
10/6/188717.1968.9833.562.94
17/6/189008.2369.8832.36

2.77

Step by Step Solution

3.46 Rating (162 Votes )

There are 3 Steps involved in it

Step: 1

2 The weekely returns are given in below table Return Week 362 1 057 2 468 3 1127 4 216 5 1083 6 328 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
635e387e118b3_182476.pdf

180 KBs PDF File

Word file Icon
635e387e118b3_182476.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions