{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

tute-week05 - Week05 Tutorial Questions Question 1 The...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week05 Tutorial Questions Question 1: The Excel file “HK.xls” contains daily index returns in some Asian markets. Use the “frequency approach to the computation of probability” to answer the following questions (Hint: you may consider using Excel’s “Data Filter AutoFilter” tool). 1) What is the probability that the Thailand daily index return is negative? 2) What is the probability that the HK daily index return is negative? 3) When Thailand daily index return is negative, what is the probability that the HK daily index return is also negative? Some analysts believed that the 1997 Asian Financial Crisis has changed the relationship be- tween the Thailand stock market and any other Asian stock market. Use the pre-crisis sample (from 03/01/1990 to 30/06/1997) and post-crisis sample (from 01/07/1997 to 23/06/2005) to re-compute the probability values in the above three questions. Question 2: Let X denote the percentage daily return of an asset (i.e., a value of 0.3 means that the daily return is 0.3%). Assume that X
Background image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}