Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following table provides the weekly prices of particular shares for 11 weeks 3 2 4 2009-09-01 2009-09-08 2009-09-15 2009-09-22 2009-09-29 2009-10-06 4204 4238 4257

image text in transcribed

The following table provides the weekly prices of particular shares for 11 weeks 3 2 4 2009-09-01 2009-09-08 2009-09-15 2009-09-22 2009-09-29 2009-10-06 4204 4238 4257 4248 4274 4311 10 2009-10-132009-10-20 2009-10-272009-11-03 2009-11-10 4344 4345 4359 4380 4397 (1) Given that the simple weekly return is defined by Rcalculate the simple weekly returns of the shares' prices. (2) Perform the moving-average method with n - 3 to calculate F5,..,F11 for the weekly returns, and then calculate the share price on Nov 17, 2009. Round your answer to 2 decimal places. (3) Using exponential smoothing method with -0.4 and Ao-0.6% to forecast the weekly returns for t- 1, 2, 10. Then again, represent the results in terms of the shares' prices. (4) Another way of obtaining the forecasted share price is to directly work on the time series data given in the above table (ie, the share's prices). let 0.5, -0.2, S 4190, Bo - 17.9, perform Holt's method to generate the forecast prices for t-0, 1, ...11. (5) Again, consider share's prices directly. Construct a linear regression model Xt -A + Bt and use the method of least squares to calculate A, B, and the forecasted share price on Nov 17, 2009. Again round your answer to 2 decimal places. (6) Generate a graph combining the original data and your forecasts using the above 4 methods. Note: You could compute the results either using Excel or manually

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

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

5th Edition

0072339160, 978-0072339161

More Books

Students also viewed these Finance questions

Question

In which ways would you measure training success? Explain.

Answered: 1 week ago

Question

Evaluate Meyers and Browns approach to career development.

Answered: 1 week ago