Lab 4 Exercises 2010

Lab 4 Exercises 2010 - LAB COPY DO NOT REMOVE! Lab 4:...

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Lab 4: Bivariate Distributions: Correlation, Covariance and Regression Objectives: 1. Learning a simple way to download data from web sites. 2. Even more practice with Excel: graphs (XY Scatter), equations, functions, covariance and correlation. 3. Building a portfolio of stocks: Expected return and risk. Key Terms: 1. Covariance and correlation . 2. Scatter Diagrams / X-Y Graphs 3. Portfolio Analysis: Expected Returns and Risk Data : Lab 4 – Interest Rates and Portfolio.xlsx . Exercises: Downloading Data – A simple method. 1. Open the Excel file du jour : Lab 4 - Interest Rates and Portfolio.xls . The file contains several interest rates that I collected from the web site below. 2. The web is a great place to find data, especially data of interest to federal agencies. Today we’re going to work with various interest rates and the consumer price index. To download the interest rates, open the web site: http://www.federalreserve.gov/releases/h15/data.htm . This web site provides links to a number of data series. ( http://www.federalreserve.gov/releases .) 3. Near the very bottom of this table, you should find several series for Corporate Bonds . We’re going to use Moody’s Seasoned – Aaa rated bonds. Click on the right-most column labeled annual . This will open a text file that describes the series at the top and then lists the series beginning in 1976 and continuing through 2009. 4. To copy these data to Excel, simply block the data by clicking and dragging the mouse over the two columns (years 1976 – 2009 ), then Copy that selection. Return to the Excel spreadsheet and create a new worksheet titled Corporate Bonds – Aaa . Click on cell A2 in that new worksheet (leave A1 open for a label) and the Paste the data. (To paste the data, try “right-clicking” in cell A2, choose Paste Special… ” and select “ HTML ” or Unicode Text .” Excel may treat these as two columns of data.
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This note was uploaded on 12/08/2011 for the course ECON 312 taught by Professor Daniellass during the Winter '10 term at UMass (Amherst).

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Lab 4 Exercises 2010 - LAB COPY DO NOT REMOVE! Lab 4:...

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