HW#5-Depaul-FIN_202

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

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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
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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
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A). This negative correlation goes with the idea of reversal that
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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...
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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.

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

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