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URGENT. THUMBS UP UPON ANSWERING QUESTION! Excel version of the table below can be downloaded at https://docs.google.com/spreadsheets/d/1p_m9u6L9cmr8fzAcr7m8nxc5qN9oi0vBAhehN9OfiyY/edit?usp=sharing The data given to you in the following

URGENT. THUMBS UP UPON ANSWERING QUESTION!

Excel version of the table below can be downloaded at https://docs.google.com/spreadsheets/d/1p_m9u6L9cmr8fzAcr7m8nxc5qN9oi0vBAhehN9OfiyY/edit?usp=sharing

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The data given to you in the following table (see excel link below contains the average monthly returns and standard deviations for the S&P 500 index in USD) and. EAFE index in Local currency and USD) for the period 1991 to 2012. The correlation between S&P 500 and the EAFE (Local currency) over the entire period is 0.7927 (for local currency). The correlation between S&P 500 and the EAFE (USD) over the entire period is 0.7805. You are asked to present three computations: (a) Graphically depict the benefits the investor derives from investing in these market indices (S&P 500 and EAFE) assuming both are denominated in USD. You should show your workings. (5 points) Formatting suggestion: This graph may be generated using a spreadsheet program or other software. If you hand-draw the graph, take a picture of the graph and insert the gif/jpeg file into your submission document before converting it into a PDF file. Question 3: Table. S&P 500 EAFE (Local Currency) MEAN STD EAFE (USD) MEAN STD MEAN STD 1993 5.34% 4.21% 5.15% 3.76% 3.69% 2.09% 4.65% 5.67% 3.65% 3.92% 4.94% 2.92% 5.48% 1991 2.33% 4.56% 0.82% 4.61% 1.12% 1992 0.63% 2.15% -0.45% 3.37% -0.96% 0.82% 1.75% 2.27% 4.51% 2.52% 1994 0.15% 3.05% -0.09% 3.50% 0.71% 1995 2.70% 1.50% 0.84% 3.42% 0.98% 1996 1.78% 3.14% 0.96% 2.86% 0.54% 1997 2.52% 4.60% 1.19% 4.73% 0.27% 1998 2.30% 6.21% 1.17% 6.03% 1.71% 1999 1.67% 3.78% 2.51% 3.59% 2.09% 2000 -0.68% 4.95% -0.57% -1.17% 2001 -0.0096 5.7396 -1.3396 4.9896 -1.8596 2002 -1.90% 5.96% -2.31% 5.69% -1.27% 2003 2.17% 3.29% 1.66% 3.97% 2.87% 2004 0.88% 2.11% 1.04% 1.67% 1.61% 2005 0.42% 2.29% 2.22% 2.78% 1.14% 2006 1.24% 1.63% 1.34% 2.61% 2.04% 2007 0.48% 2.79% 0.35% 2.49% 0.96% 2008 -3.60% 6.07% -3.94% 6.76% -4.28% 2009 2.17% 6.43% 2.04% 5.60% 2.62% 2010 1.32% 5.56% 0.52% 4.37% 0.86% 2011 0.27% 4.60% -0.97% 3.85% -0.89% 2012 1.29% 3.04% 1.44% 3,56% 1.49% MEAN: average monthly returns; STD: standard deviation of monthly returns 4.22% 2.73% 2.89% 2.70% 2.79% 7.83% 7.43% 6.62% 5.64% 4.79% The data given to you in the following table (see excel link below contains the average monthly returns and standard deviations for the S&P 500 index in USD) and. EAFE index in Local currency and USD) for the period 1991 to 2012. The correlation between S&P 500 and the EAFE (Local currency) over the entire period is 0.7927 (for local currency). The correlation between S&P 500 and the EAFE (USD) over the entire period is 0.7805. You are asked to present three computations: (a) Graphically depict the benefits the investor derives from investing in these market indices (S&P 500 and EAFE) assuming both are denominated in USD. You should show your workings. (5 points) Formatting suggestion: This graph may be generated using a spreadsheet program or other software. If you hand-draw the graph, take a picture of the graph and insert the gif/jpeg file into your submission document before converting it into a PDF file. Question 3: Table. S&P 500 EAFE (Local Currency) MEAN STD EAFE (USD) MEAN STD MEAN STD 1993 5.34% 4.21% 5.15% 3.76% 3.69% 2.09% 4.65% 5.67% 3.65% 3.92% 4.94% 2.92% 5.48% 1991 2.33% 4.56% 0.82% 4.61% 1.12% 1992 0.63% 2.15% -0.45% 3.37% -0.96% 0.82% 1.75% 2.27% 4.51% 2.52% 1994 0.15% 3.05% -0.09% 3.50% 0.71% 1995 2.70% 1.50% 0.84% 3.42% 0.98% 1996 1.78% 3.14% 0.96% 2.86% 0.54% 1997 2.52% 4.60% 1.19% 4.73% 0.27% 1998 2.30% 6.21% 1.17% 6.03% 1.71% 1999 1.67% 3.78% 2.51% 3.59% 2.09% 2000 -0.68% 4.95% -0.57% -1.17% 2001 -0.0096 5.7396 -1.3396 4.9896 -1.8596 2002 -1.90% 5.96% -2.31% 5.69% -1.27% 2003 2.17% 3.29% 1.66% 3.97% 2.87% 2004 0.88% 2.11% 1.04% 1.67% 1.61% 2005 0.42% 2.29% 2.22% 2.78% 1.14% 2006 1.24% 1.63% 1.34% 2.61% 2.04% 2007 0.48% 2.79% 0.35% 2.49% 0.96% 2008 -3.60% 6.07% -3.94% 6.76% -4.28% 2009 2.17% 6.43% 2.04% 5.60% 2.62% 2010 1.32% 5.56% 0.52% 4.37% 0.86% 2011 0.27% 4.60% -0.97% 3.85% -0.89% 2012 1.29% 3.04% 1.44% 3,56% 1.49% MEAN: average monthly returns; STD: standard deviation of monthly returns 4.22% 2.73% 2.89% 2.70% 2.79% 7.83% 7.43% 6.62% 5.64% 4.79%

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