Some market participants say that cryptocurrencies are digital gold In this question we will compare the return properties of Bitcoin, gold, and the U S stock market The Excel file Returns includes (i) the price of bitcoin, (ii) the price of gold (per ounce), (iii) the total U S stock market index (incl dividend payments), and (iv) the Treasury bill index at a monthly level from 12 31 2019 to 10 31 2022 The indices are set to 100 points on 12 31 2019 date Bitcoin Price Gold Price Stock Market Index Treasury Bill Index 12 31 19 7179 957819 1480 025 100 100 1 31 20 9388 880752 1560 668 100 02 100 13 2 29 20 8639 591417 1598 818 92 008398 100 250156 3 31 20 6446 421347 1593 764 79 80808443 100 3804812 4 30 20 8767 672623 1680 03 90 70188795 100 3804812 5 31 20 9427 670084 1715 697 95 77212349 100 3905193 6 30 20 9148 444859 1734 032 98 13769494 100 4005583 7 31 20 11373 31726 1840 807 103 8100537 100 4105984 8 31 20 11678 37326 1971 17 111 7411418 100 4206394 9 30 20 10741 57955 1923 477 107 6961125 100 4306815 10 31 20 13891 21683 1902 525 105 4452637 100 4407246 11 30 20 19382 36059 1869 502 118 6048326 100 4507686 12 31 20 29111 52157 1853 798 124 1080969 100 4608137 1 31 21 33087 36986 1869 675 124 0832752 100 4708598 2 28 21 45092 80657 1814 005 127 5327903 100 4708598 3 31 21 58724 66452 1721 557 131 4608002 100 4708598 4 30 21 57302 64642 1758 8 137 9418177 100 4708598 5 31 21 36929 47674 1847 561 138 341849 100 4708598 6 30 21 34855 64451 1836 098 142 1462498 100 4708598 7 31 21 41869 55251 1805 873 143 9515072 100 4708598 8 31 21 46919 51155 1784 086 148 140496 100 4708598 9 30 21 43718 37775 1780 95 141 6667564 100 4708598 10 31 21 61374 27837 1774 5 151 0875957 100 4708598 11 30 21 57005 42578 1820 293 148 7457379 100 4708598 12 31 21 46306 44531 1788 633 153 3717304 100 4809069 1 31 22 38483 125 1816 31 143 7859972 100 4809069 2 28 22 43193 23438 1857 718 140 4932979 100 4809069 3 31 22 45538 67578 1947 417 144 7923928 100 490955 4 30 22 37714 875 1935 039 131 1095117 100 5010041 5 31 22 31792 31055 1851 54 130 7030722 100 5311544 6 30 22 19784 72656 1835 325 119 7632251 100 591473 7 31 22 23336 89648 1738 84 131 3203763 100 6719462 8 31 22 20049 76367 1765 625 126 6059748 100 8632229 9 30 22 19431 78906 1685 383 114 9962069 101 054863 10 31 22 20495 77344 1665 607 124 3117389 101 3555013 Compute the summary statistics (arith mean, geom mean, std dev , Sharpe ratio) for the rates or return of the four assets (not prices or index values) over the period from January 2020 to October 2022 Average monthly arithmetic mean Average monthly geometric mean Monthly standard deviation Sharpe ratio of monthly returns Estimate the monthly alphas, the market betas, and the R squared of the regression for bitcoin and gold Explain what the alphas and betas capture Is bitcoin more similar to gold or the stock market Run two separate regressions, one for bitcoin and one for gold

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Some market participants say that cryptocurrencies are digital gold. In this question we will compare the return properties of Bitcoin, gold, and the U.S. stock

Some market participants say that cryptocurrencies are "digital gold." In this question we will compare the return properties of Bitcoin, gold, and the U.S. stock market. The Excel file "Returns" includes (i) the price of bitcoin, (ii) the price of gold (per ounce), (iii) the total U.S. stock market index (incl. dividend payments), and (iv) the Treasury bill index at a monthly level from 12/31/2019 to 10/31/2022. The indices are set to 100 points on 12/31/2019.

date	Bitcoin Price	Gold Price	Stock Market Index	Treasury Bill Index
12/31/19	7179.957819	1480.025	100	100
1/31/20	9388.880752	1560.668	100.02	100.13
2/29/20	8639.591417	1598.818	92.008398	100.250156
3/31/20	6446.421347	1593.764	79.80808443	100.3804812
4/30/20	8767.672623	1680.03	90.70188795	100.3804812
5/31/20	9427.670084	1715.697	95.77212349	100.3905193
6/30/20	9148.444859	1734.032	98.13769494	100.4005583
7/31/20	11373.31726	1840.807	103.8100537	100.4105984
8/31/20	11678.37326	1971.17	111.7411418	100.4206394
9/30/20	10741.57955	1923.477	107.6961125	100.4306815
10/31/20	13891.21683	1902.525	105.4452637	100.4407246
11/30/20	19382.36059	1869.502	118.6048326	100.4507686
12/31/20	29111.52157	1853.798	124.1080969	100.4608137
1/31/21	33087.36986	1869.675	124.0832752	100.4708598
2/28/21	45092.80657	1814.005	127.5327903	100.4708598
3/31/21	58724.66452	1721.557	131.4608002	100.4708598
4/30/21	57302.64642	1758.8	137.9418177	100.4708598
5/31/21	36929.47674	1847.561	138.341849	100.4708598
6/30/21	34855.64451	1836.098	142.1462498	100.4708598
7/31/21	41869.55251	1805.873	143.9515072	100.4708598
8/31/21	46919.51155	1784.086	148.140496	100.4708598
9/30/21	43718.37775	1780.95	141.6667564	100.4708598
10/31/21	61374.27837	1774.5	151.0875957	100.4708598
11/30/21	57005.42578	1820.293	148.7457379	100.4708598
12/31/21	46306.44531	1788.633	153.3717304	100.4809069
1/31/22	38483.125	1816.31	143.7859972	100.4809069
2/28/22	43193.23438	1857.718	140.4932979	100.4809069
3/31/22	45538.67578	1947.417	144.7923928	100.490955
4/30/22	37714.875	1935.039	131.1095117	100.5010041
5/31/22	31792.31055	1851.54	130.7030722	100.5311544
6/30/22	19784.72656	1835.325	119.7632251	100.591473
7/31/22	23336.89648	1738.84	131.3203763	100.6719462
8/31/22	20049.76367	1765.625	126.6059748	100.8632229
9/30/22	19431.78906	1685.383	114.9962069	101.054863
10/31/22	20495.77344	1665.607	124.3117389	101.3555013

Compute the summary statistics (arith. mean, geom. mean, std. dev., Sharpe ratio) for the rates or return of the four assets (not prices or index values) over the period from January 2020 to October 2022:
1. Average monthly arithmetic mean
2. Average monthly geometric mean
3. Monthly standard deviation
4. Sharpe ratio of monthly returns
Estimate the monthly alphas, the market betas, and the R-squared of the regression for bitcoin and gold. Explain what the alphas and betas capture? Is bitcoin more similar to gold or the stock market? Run two separate regressions, one for bitcoin and one for gold.