Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The researched sector is the Utilities Select Sector SPDR Fund (XLU), so you can find date for the Utilities Select Sector SPDR Fund (XLU) on

image text in transcribed

The researched sector is the Utilities Select Sector SPDR Fund (XLU), so you can find date for the Utilities Select Sector SPDR Fund (XLU) on the internet

This homework assignment is designed to use a set of data to find the sample variance and sample covariance. The sample variance S2 is defined by S2=n11i=1n(XiX)2, where X=n1i=1nXi. The sample covariance is defined by Sxy=n11i=1n(XiX)(YiY). The sample correlation is defined by R=SxSySxy=i=1n(XiX)2i=1n(YiY)2i=1n(XiX)(YiY). 1. Let Ri(k) and Ri(w) be the ith-month rate of return for sector k and for the SP500 from July 1, 2021 to June 30, 2022. (a) Find the sample variance for Ri(w) ( SP500) and the sample covariance for your section Ri(k) with Ri(w). (use only the set of data from your sector). (b) Find the sample correlation R. This homework assignment is designed to use a set of data to find the sample variance and sample covariance. The sample variance S2 is defined by S2=n11i=1n(XiX)2, where X=n1i=1nXi. The sample covariance is defined by Sxy=n11i=1n(XiX)(YiY). The sample correlation is defined by R=SxSySxy=i=1n(XiX)2i=1n(YiY)2i=1n(XiX)(YiY). 1. Let Ri(k) and Ri(w) be the ith-month rate of return for sector k and for the SP500 from July 1, 2021 to June 30, 2022. (a) Find the sample variance for Ri(w) ( SP500) and the sample covariance for your section Ri(k) with Ri(w). (use only the set of data from your sector). (b) Find the sample correlation R

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

More Books

Students also viewed these Finance questions