Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Run a simple linear regression using EXCEL ( 11 Marks) Use Time period and Stock 1 prices Show the output from Excel ( note the

  1. Run a simple linear regression using EXCEL (11 Marks)
    1. Use Time periodand Stock 1 pricesShow the output from Excel ( note the weeks must be changed to time periods 1,2,3...)
    2. Set up the linear regression equation Stock 2
    3. Test the significance using p-value with =0.05. Stock 2
    4. Use Linear regression equation (from b) forecast the stock price for end of May 2022. Stock 2
    5. Draw Time-series plot for Stock 2
    6. Do you notice any trend in e)? How would you adjust your forecast above in d)?
Stock 1 prices
weekly rate of return DEVIDATION OF STANDARD RATE OF RETURN
239.48
232.79 -2.793552698
219.62 -5.657459513
219.91 0.132046262
237.72 8.098767678
265.93 11.86690224
270.85 1.850110931
227.11 -16.14916005
218.41 -3.830742812
241.72 10.67258825
224.3 -7.206685421
208.47 -7.05751226
229.51 10.09257927
258.37 12.57461549
263.08 1.822967063
245.11 -6.830621864
247.76 1.08114724
223.96 -9.606070391
197.13 -11.97981782
204.91 3.946634201
220.9 7.803425894
211.43 -4.287007696
217.14 2.700657428
236.13 8.745509809
244.15 3.396434168
241.85 -0.942043826
235.9 -2.460202605
235.16 -0.313692242
260.59 10.81391393
255.28 -2.037683718
281.81 10.39251018
268.59 -4.691103935
257.35 -4.184817007
262.13 1.857392656
265.94 1.453477282
251.54 -5.414755208
255.09 1.411306353
266.72 4.559175193
239.84 -10.0779844
249.16 3.885923949
247.41 -0.702359929
265.08 7.141991027
261.33 -1.41466727
247.46 -5.307465656
226.51 -8.466014709
230.35 1.695289391
215.65 -6.381593228
192.15 -10.89728727
186.75 -2.81030445
165.88 -11.17536814
167.71 1.103207138
165.34 -1.413153658
144.66 -12.50756018
136.95 -5.329738698
127.58 -6.841913107
105.64 -17.19705283
101.5 -3.918970087
108.94 7.330049261
104.02 -4.516247476
94.99 -8.68102288
119.82 26.13959364

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

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

Intermediate Accounting IFRS

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

4th Edition

1119607515, 978-1119607519

More Books

Students also viewed these Accounting questions

Question

Subjective norms, i.e. the norms of the target group

Answered: 1 week ago

Question

The relevance of the information to the interpreter

Answered: 1 week ago