HW#5-Depaul-FIN_202

# HW#5-Depaul-FIN_202 - Osterburg brought up. After an above...

This preview shows pages 1–4. Sign up to view the full content.

Year Unit Sales Interest Rate 2000 50 8.0 2001 70 7.0 2002 80 6.0 2003 60 7.0 Sample Correlation -0.95

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Fund 1 Large-cap fund Fund 2 Mid-Cap fund Fund 3 Large-cap value fund Fund 4 Emerging markets fund U.S. domestics stock index Fund 1 Fund 2 Fund 3 Fund 4 Fund 1 1 Fund 2 0.92 1 Fund 3 0.48 0.42 1 Fund 4 0.71 0.72 0.31 1 0.83 0.82 0.58 0.75 1 critical t-value 34 n=36 n-2 1.9 not significantly different from zero 2.55 significantly different than zero The rest of the values are greater than .4156 therefore they are too significantly different from zero
A). This negative correlation goes with the idea of reversal that

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Osterburg brought up. After an above average return, there is a low average return and vice-versa. B). calculated correlation coefficient :-0.06 n-2: 57 t-test-0.49 CANNOT REJECT HYPOTHESIS Martinez idea is not rejected A). Year i Exchange Rate Xi Sales Yi 1 0.40 20 2 0.36 25 3 0.42 16 4 0.31 30 5 0.33 35 6 0.34 30 sample mean (Xi) 0.36 SD (Xi) 0.04 sample mean (Yi) 26 SD (Yi) 7.07 B). Covariance-0.23 C). Correlation-0.93 D).-154.44 b1-154.44 Y=81.6-154.44x 26-(-154.44)(.36) b0 81.6...
View Full Document

## This homework help was uploaded on 04/20/2008 for the course FIN 202 taught by Professor William,white during the Spring '08 term at DePaul.

### Page1 / 4

HW#5-Depaul-FIN_202 - Osterburg brought up. After an above...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online