{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

HW7%20Solutions - AD Number Name Score IE 300 GE 331 HW7...

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

View Full Document Right Arrow Icon
AD Number________ Name_________________________ Score________ IE 300 / GE 331 HW7 From http://finance.yahoo.com, download daily prices for NASDAQ-100 (^NDX) and Google Inc. (Goog) from 8/19/2004 to 03/26/2010. Create a csv file containing 5 columns: one column for the date, two columns for the Adj Close price and daily return of each of the above two time series. Copy and paste your R commands and outputs to this word file. Solutions without original R commands and outputs do not receive credits. Save the file as hw7.csv > hw <- read.csv("hw7.csv", header=T) 1. Construct a histogram for the return of NASDAQ-100 and comment. > hist(hw$NASDAQ.Return,breaks=30) Comment: Most of the returns fall into the interval [-5%, 5%]. But there are very large positive as well as negative returns, indicating that the return distribution has fat tails. 2. Construct side-by-side box plots for the returns of Google and NASDAQ-100 and comment. > boxplot(hw$NASDAQ.Return, hw$Google.Return) Comment: The box plots show that the return of NASDAQ (left) is less dispersed than that of Google (right), and both distributions have fat tails.
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
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}