Question
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 Name | Full Name | ||
BIT | Bitcoin | ||
BHP | BHP Billiton | ||
CBA | Commonwealth Bank of Australia | ||
TLS | Telstra Corporation | ||
Date | BIT | CBA | BHP | TLS |
15/6/14 | 690 | 80.9812 | 33.5932 | 5.17 |
22/6/14 | 665 | 81.031 | 34.0324 | 5.26 |
29/6/14 | 661.2 | 81.5084 | 35.107 | 5.34 |
6/7/14 | 692.14 | 80.7923 | 35.1163 | 5.33 |
13/7/14 | 614.12 | 80.832 | 35.8732 | 5.43 |
20/7/14 | 600.84 | 81.8366 | 36.4432 | 5.45 |
27/7/14 | 665.93 | 82.3737 | 35.8919 | 5.44 |
3/8/14 | 687.76 | 79.6982 | 35.2658 | 5.39 |
10/8/14 | 584.97 | 80.7624 | 36.4899 | 5.58 |
17/8/14 | 543 | 80.1756 | 35.3219 | 5.71 |
24/8/14 | 510.53 | 80.8818 | 34.266 | 5.56 |
31/8/14 | 537.92 | 80.8619 | 33.3128 | 5.64 |
7/9/14 | 562.43 | 79.7977 | 33.4437 | 5.54 |
14/9/14 | 424.44 | 77.3907 | 33.154 | 5.41 |
21/9/14 | 460.15 | 74.8544 | 31.9205 | 5.31 |
28/9/14 | 353.36 | 76.237 | 31.2571 | 5.39 |
5/10/14 | 481.64 | 74.3969 | 30.1918 | 5.29 |
12/10/14 | 485.55 | 76.1275 | 31.2103 | 5.38 |
19/10/14 | 449.98 | 78.3455 | 31.528 | 5.5 |
27/10/14 | 419.9 | 80.0463 | 31.7336 | 5.63 |
3/11/14 | 440.98 | 82.314 | 32.2289 | 5.77 |
10/11/14 | 463.96 | 81.3294 | 31.0702 | 5.8 |
17/11/14 | 448.09 | 79.6584 | 29.6218 | 5.65 |
24/11/14 | 471.5 | 80.285 | 28.8929 | 5.69 |
1/12/14 | 476 | 81.2001 | 28.4257 | 5.67 |
8/12/14 | 419.55 | 81.2995 | 26.5942 | 5.7 |
15/12/14 | 434.97 | 83.2589 | 27.0801 | 5.89 |
22/12/14 | 443.46 | 84.4624 | 27.0708 | 5.91 |
29/12/14 | 362.8 | 85.278 | 27.6034 | 5.97 |
5/1/15 | 350.09 | 85.5763 | 27.2483 | 6.07 |
12/1/15 | 290.02 | 83.1197 | 25.2766 | 6.22 |
19/1/15 | 480.51 | 85.7653 | 27.4539 | 6.34 |
26/1/15 | 289.48 | 88.8486 | 27.3418 | 6.5 |
2/2/15 | 309.59 | 92.479 | 29.4816 | 6.59 |
9/2/15 | 323.9 | 92.648 | 30.061 | 6.59 |
16/2/15 | 323.5 | 89.7239 | 30.1825 | 6.61 |
23/2/15 | 354.85 | 91.4247 | 31.444 | 6.37 |
2/3/15 | 351.34 | 90.5991 | 30.5002 | 6.28 |
9/3/15 | 405.86 | 90.8279 | 27.809 | 6.2 |
16/3/15 | 349.82 | 95.8009 | 28.6593 | 6.37 |
23/3/15 | 380 | 93.8316 | 28.7341 | 6.38 |
29/3/15 | 320.56 | 93.8913 | 28.2388 | 6.32 |
5/4/15 | 379.94 | 93.6227 | 28.1641 | 6.28 |
12/4/15 | 365 | 91.5838 | 28.0052 | 6.14 |
19/4/15 | 300 | 91.6037 | 29.9489 | 6.32 |
26/4/15 | 324.68 | 88.4408 | 30.3694 | 6.24 |
3/5/15 | 295.91 | 82.1947 | 29.248 | 6.17 |
10/5/15 | 345.03 | 84.2933 | 30.36 | 6.2 |
17/5/15 | 327.36 | 82.6621 | 29.25 | 6.2 |
24/5/15 | 369.69 | 84.6315 | 29.59 | 6.22 |
31/5/15 | 328.8 | 79.8573 | 27.9 | 6.01 |
7/6/15 | 320.5 | 80.9812 | 27.9 | 6.03 |
14/6/15 | 312.87 | 84.0148 | 28.41 | 6.13 |
21/6/15 | 325.62 | 86.1831 | 27.5 | 6.2 |
28/6/15 | 362.18 | 86.193 | 26.59 | 6.13 |
5/7/15 | 443.58 | 85.3277 | 26.65 | 6.21 |
12/7/15 | 412.15 | 87.5059 | 27.1 | 6.42 |
19/7/15 | 401.96 | 85.3476 | 25.27 | 6.36 |
26/7/15 | 415 | 87.0882 | 26.45 | 6.49 |
2/8/15 | 362.04 | 80.8619 | 25.93 | 6.29 |
9/8/15 | 329.08 | 81.6775 | 25.32 | 6.08 |
16/8/15 | 357.53 | 75.59 | 24.1 | 6.07 |
23/8/15 | 320.4 | 76.36 | 25.49 | 5.82 |
30/8/15 | 349.46 | 72.15 | 24.69 | 5.61 |
6/9/15 | 330.8 | 75.13 | 23.71 | 5.55 |
13/9/15 | 323.27 | 75.83 | 24.46 | 5.65 |
20/9/15 | 346.48 | 71.44 | 22.93 | 5.67 |
27/9/15 | 350.66 | 73.39 | 22.6 | 5.62 |
4/10/15 | 339.59 | 75.53 | 25.6 | 5.64 |
11/10/15 | 373.53 | 76.55 | 25 | 5.44 |
18/10/15 | 400.01 | 77.35 | 24.59 | 5.58 |
26/10/15 | 477.69 | 76.73 | 23.02 | 5.4 |
2/11/15 | 551.39 | 76.59 | 22.7 | 5.31 |
9/11/15 | 471.79 | 75.76 | 20.23 | 5.14 |
16/11/15 | 476.89 | 79.83 | 20.5 | 5.41 |
23/11/15 | 518.39 | 80.12 | 18.77 | 5.4 |
30/11/15 | 540.58 | 80.22 | 17.93 | 5.41 |
7/12/15 | 605.46 | 78.95 | 17.2 | 5.2 |
14/12/15 | 616.24 | 81.57 | 16.87 | 5.48 |
21/12/15 | 581.21 | 83.32 | 18.34 | 5.46 |
28/12/15 | 582.38 | 85.53 | 17.86 | 5.61 |
4/1/16 | 642.2 | 79.42 | 16.35 | 5.3 |
11/1/16 | 554.28 | 78.88 | 15.07 | 5.33 |
18/1/16 | 573.92 | 76.56 | 15.26 | 5.54 |
25/1/16 | 532.58 | 78.67 | 15.35 | 5.63 |
1/2/16 | 529.39 | 76.6 | 16.2 | 5.65 |
8/2/16 | 567.05 | 73.33 | 15.09 | 5.57 |
15/2/16 | 609.61 | 73.43 | 16.61 | 5.28 |
22/2/16 | 606.68 | 70.72 | 15.59 | 5.27 |
29/2/16 | 548.07 | 75.74 | 17.67 | 5.13 |
7/3/16 | 543.69 | 76.37 | 17.61 | 5.16 |
14/3/16 | 584.58 | 78.16 | 18.1 | 5.22 |
21/3/16 | 589.97 | 74.82 | 17 | 5.25 |
27/3/16 | 585.82 | 72.99 | 16.97 | 5.26 |
3/4/16 | 555.66 | 70.76 | 16.18 | 5.16 |
10/4/16 | 574.93 | 75 | 19.28 | 5.24 |
17/4/16 | 616.19 | 75.04 | 20.36 | 5.4 |
24/4/16 | 588.28 | 73.89 | 20.68 | 5.36 |
1/5/16 | 655.87 | 74.35 | 18.46 | 5.6 |
8/5/16 | 642.67 | 77.39 | 18.2 | 5.68 |
15/5/16 | 612.75 | 78.12 | 18.85 | 5.66 |
22/5/16 | 701.27 | 78.9 | 19.37 | 5.67 |
29/5/16 | 788.69 | 75.75 | 18.53 | 5.59 |
5/6/16 | 903.09 | 75.49 | 18.8 | 5.46 |
12/6/16 | 1053.05 | 72.03 | 18.08 | 5.31 |
19/6/16 | 905.65 | 72.57 | 17.54 | 5.35 |
26/6/16 | 897.08 | 73.83 | 19.09 | 5.58 |
3/7/16 | 871.54 | 72.41 | 19.05 | 5.59 |
10/7/16 | 895.01 | 75.94 | 20.37 | 5.75 |
17/7/16 | 893.52 | 77.14 | 19.3 | 5.8 |
24/7/16 | 823.18 | 77.35 | 19.52 | 5.77 |
31/7/16 | 787.93 | 76.15 | 20.03 | 5.66 |
7/8/16 | 750.5 | 76.01 | 20.68 | 5.45 |
14/8/16 | 760 | 73.45 | 21.29 | 5.48 |
21/8/16 | 770 | 73.26 | 20.88 | 5.3 |
28/8/16 | 815.6 | 70.91 | 19.85 | 5.12 |
4/9/16 | 814 | 70.87 | 20.78 | 5.06 |
11/9/16 | 834.99 | 72.24 | 20.09 | 5.1 |
18/9/16 | 786.2 | 73.4 | 21.53 | 5.19 |
25/9/16 | 819.42 | 72.4 | 22.38 | 5.18 |
2/10/16 | 815.57 | 74.38 | 23.3 | 5.01 |
9/10/16 | 854 | 74.58 | 22.54 | 5.08 |
16/10/16 | 861.02 | 74.9 | 23.04 | 5.04 |
23/10/16 | 925 | 72.75 | 22.98 | 4.95 |
31/10/16 | 925.83 | 70.99 | 22.27 | 4.9 |
7/11/16 | 931.9 | 75.78 | 24.94 | 4.72 |
14/11/16 | 1000.52 | 76.86 | 24.1 | 4.93 |
21/11/16 | 1002.97 | 78.17 | 26.5 | 5.03 |
28/11/16 | 1024.27 | 78.6 | 25.02 | 4.95 |
5/12/16 | 1075.2 | 80.67 | 25.98 | 4.99 |
12/12/16 | 1106.2 | 81.06 | 25 | 4.91 |
19/12/16 | 1235.94 | 82.5 | 24.63 | 5.04 |
26/12/16 | 1381.4 | 82.41 | 25.06 | 5.1 |
2/1/17 | 1244.41 | 84.13 | 25.5 | 5.26 |
9/1/17 | 1095.16 | 83.86 | 26.33 | 5.22 |
16/1/17 | 1223.2 | 81.58 | 26.35 | 5.14 |
23/1/17 | 1238.34 | 82.98 | 27.52 | 5.11 |
30/1/17 | 1347.74 | 81.68 | 26.2 | 5.08 |
6/2/17 | 1341.48 | 82.9 | 25.88 | 5.16 |
13/2/17 | 1375.95 | 85.39 | 26.64 | 4.84 |
20/2/17 | 1553.46 | 83.02 | 25.06 | 4.81 |
27/2/17 | 1690.27 | 83.2 | 25.34 | 4.59 |
6/3/17 | 1649.1 | 84.5 | 23.67 | 4.64 |
13/3/17 | 1362.27 | 84.77 | 24.84 | 4.76 |
20/3/17 | 1277.61 | 83.38 | 24.26 | 4.59 |
26/3/17 | 1472.88 | 85.91 | 24.04 | 4.66 |
2/4/17 | 1612.83 | 84.77 | 24.59 | 4.56 |
9/4/17 | 1588.75 | 86.25 | 24.31 | 4.16 |
16/4/17 | 1683.46 | 85.64 | 24.04 | 4.23 |
23/4/17 | 1781.71 | 87.4 | 23.72 | 4.22 |
30/4/17 | 2196.67 | 84.4 | 22.62 | 4.4 |
7/5/17 | 2595.07 | 81.67 | 23.75 | 4.36 |
14/5/17 | 2860.85 | 80.23 | 24.28 | 4.43 |
21/5/17 | 3094.79 | 80.14 | 24.01 | 4.48 |
28/5/17 | 3493.27 | 80.38 | 24.07 | 4.49 |
4/6/17 | 3889.46 | 79.19 | 23.54 | 4.37 |
11/6/17 | 3588.86 | 81.86 | 22.99 | 4.38 |
18/6/17 | 3503.31 | 81.25 | 22.41 | 4.35 |
25/6/17 | 3342.76 | 82.81 | 23.28 | 4.3 |
2/7/17 | 3415.51 | 82.13 | 24.59 | 4.32 |
9/7/17 | 2510 | 83.12 | 25.13 | 4.3 |
16/7/17 | 3541.5 | 83.97 | 24.49 | 4.1 |
23/7/17 | 3529.74 | 83.76 | 25.33 | 4.11 |
30/7/17 | 4060.53 | 80.72 | 25.72 | 4.07 |
6/8/17 | 5318.14 | 80.5 | 25.55 | 4.15 |
13/8/17 | 5298.76 | 79.09 | 25.39 | 3.9 |
20/8/17 | 5620 | 77.72 | 26.68 | 3.92 |
27/8/17 | 6018.4 | 75.48 | 27.42 | 3.67 |
3/9/17 | 5319.46 | 73.24 | 27.29 | 3.7 |
10/9/17 | 4593.05 | 76.28 | 26.26 | 3.65 |
17/9/17 | 4625.38 | 76.62 | 25.95 | 3.58 |
24/9/17 | 5565.36 | 75.25 | 25.78 | 3.49 |
1/10/17 | 5887.35 | 76.3 | 26.61 | 3.44 |
8/10/17 | 7226.76 | 76.66 | 26.36 | 3.52 |
15/10/17 | 7713.93 | 78.97 | 26.68 | 3.52 |
22/10/17 | 8018.65 | 78.24 | 26.59 | 3.55 |
30/10/17 | 9692.39 | 77.79 | 27.69 | 3.5 |
6/11/17 | 7924.89 | 80.85 | 28.07 | 3.46 |
13/11/17 | 10693.55 | 80.92 | 27.12 | 3.45 |
20/11/17 | 12297.99 | 80.57 | 27.97 | 3.48 |
27/11/17 | 15024.19 | 79.17 | 27.58 | 3.42 |
4/12/17 | 21184.87 | 79.62 | 27.17 | 3.69 |
11/12/17 | 25986.55 | 79.94 | 27.71 | 3.69 |
18/12/17 | 18939.79 | 80.39 | 29.1 | 3.66 |
25/12/17 | 19050.74 | 80.34 | 29.57 | 3.63 |
1/1/18 | 22862.21 | 81.16 | 30.58 | 3.73 |
8/1/18 | 19041.51 | 80.88 | 31.53 | 3.74 |
15/1/18 | 15148.37 | 79.83 | 30.69 | 3.57 |
22/1/18 | 14445.12 | 78.65 | 30.85 | 3.56 |
29/1/18 | 10225.82 | 80.79 | 30.81 | 3.67 |
5/2/18 | 10382.72 | 76.25 | 29.13 | 3.49 |
12/2/18 | 13338.45 | 74.02 | 31.52 | 3.43 |
19/2/18 | 12300.72 | 75.46 | 30.68 | 3.48 |
26/2/18 | 14763.94 | 75.73 | 29.63 | 3.27 |
5/3/18 | 12143.73 | 76.87 | 28.32 | 3.44 |
12/3/18 | 10646.88 | 75.34 | 29.16 | 3.35 |
19/3/18 | 11039.19 | 72.81 | 28.77 | 3.22 |
25/3/18 | 8835.98 | 72.31 | 28.21 | 3.14 |
1/4/18 | 9130.39 | 73.49 | 28.64 | 3.1 |
8/4/18 | 10654.32 | 73.16 | 29.73 | 3.1 |
15/4/18 | 11357.21 | 72.06 | 30.86 | 3.08 |
22/4/18 | 12432.76 | 71.54 | 31.11 | 3.15 |
29/4/18 | 12682.62 | 72.76 | 31.49 | 3.24 |
6/5/18 | 11560.03 | 70.53 | 33.16 | 3.2 |
13/5/18 | 11318.46 | 70.5 | 34.08 | 2.85 |
20/5/18 | 9752.02 | 69.87 | 33.07 | 2.87 |
27/5/18 | 10233.1 | 68.7 | 33.08 | 2.78 |
3/6/18 | 8956.31 | 69.37 | 34.07 | 2.77 |
10/6/18 | 8717.19 | 68.98 | 33.56 | 2.94 |
17/6/18 | 9008.23 | 69.88 | 32.36 | 2.77 |
Step by Step Solution
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