Calculate the correlation coefficient between every possible pair of securities’ annual rates of return. Microsoft Historical Annual Stock Price DataYearAverage Stock PriceYear OpenYear HighYear LowYear CloseAnnual % Change2021261.8771217.6900308.2300212.2500308.230038.58%2020193.0261160.6200231.6500135.4200222.420041.04%2019130.3820101.1200158.960097.4000157.700055.26%2018101.034085.9500115.610085.0100101.570018.74%201771.984062.580086.850062.300085.540037.66%201655.259354.800063.620048.430062.140012.00%201546.713646.760056.550040.290055.480019.44%201442.453337.160049.610034.980046.450024.16%201332.491527.620038.940026.460037.410040.06%201229.820326.765032.850026.370026.70972.89%201126.052227.980028.870023.705025.9600-6.99%201027.058430.950031.390023.010027.9100-8.43%200922.976620.330031.390015.150030.480056.79%200826.647535.220035.370017.530019.4400-45.39%200730.445929.860037.060026.720035.600019.22%200626.290826.840030.190021.510029.860014.19%200525.871026.740028.160023.920026.1500-2.13%200427.124727.450029.980024.150026.7200-2.37%200326.101426.860029.960022.800027.37005.88%200227.274533.520034.930021.415025.8500-21.96%200131.271221.690036.840021.690033.125052.72%

The correlation coefficient between the annual rates of return and Annual stock prices can be…

Answered: Calculate the correlation coefficient…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Microsoft Historical Annual Stock Price Data
2021	261.8771	217.6900	308.2300	212.2500	308.2300	38.58%
2020	193.0261	160.6200	231.6500	135.4200	222.4200	41.04%
2019	130.3820	101.1200	158.9600	97.4000	157.7000	55.26%
2018	101.0340	85.9500	115.6100	85.0100	101.5700	18.74%
2017	71.9840	62.5800	86.8500	62.3000	85.5400	37.66%
2016	55.2593	54.8000	63.6200	48.4300	62.1400	12.00%
2015	46.7136	46.7600	56.5500	40.2900	55.4800	19.44%
2014	42.4533	37.1600	49.6100	34.9800	46.4500	24.16%
2013	32.4915	27.6200	38.9400	26.4600	37.4100	40.06%
2012	29.8203	26.7650	32.8500	26.3700	26.7097	2.89%
2011	26.0522	27.9800	28.8700	23.7050	25.9600	-6.99%
2010	27.0584	30.9500	31.3900	23.0100	27.9100	-8.43%
2009	22.9766	20.3300	31.3900	15.1500	30.4800	56.79%
2008	26.6475	35.2200	35.3700	17.5300	19.4400	-45.39%
2007	30.4459	29.8600	37.0600	26.7200	35.6000	19.22%
2006	26.2908	26.8400	30.1900	21.5100	29.8600	14.19%
2005	25.8710	26.7400	28.1600	23.9200	26.1500	-2.13%
2004	27.1247	27.4500	29.9800	24.1500	26.7200	-2.37%
2003	26.1014	26.8600	29.9600	22.8000	27.3700	5.88%
2002	27.2745	33.5200	34.9300	21.4150	25.8500	-21.96%
2001	31.2712	21.6900	36.8400	21.6900	33.1250	52.72%

Similar questions

Data on the 30 largest bond funds provided one-year and five-year percentage returns for theperiod ending March 31, 2000 (The Wall Street Journal, April 10, 2000). Suppose we consider aone-year return in excess of 2% to be high and a five-year return in excess of 44% to be high.One-half of the funds had a one-year return in excess of 2%, 12 of the funds had a five-yearreturn in excess of 44%, and six of the funds had both a one-year return in excess of 2% and afive-year return in excess of 44%.a. Find the probability of a fund having a high one-year return, the probability of a fundhaving a high five-year return, and the probability of a fund having both a high one-yearreturn and a high five-year return.b. What is the probability that a fund had a high one-year return or a high five-year returnor both?c. What is the probability that a fund had neither a high one-year return nor a high fiveyear return?
Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio. Apple Historical Annual Stock Price Data Year Average Stock Price Year Open Year High Year Low Year Close Annual % Change 2021 135.6974 129.4100 156.6900 116.3600 148.7600 12.11% 2020 95.3468 75.0875 136.6900 56.0925 132.6900 80.75% 2019 52.0640 39.4800 73.4125 35.5475 73.4125 86.16% 2018 47.2634 43.0650 58.0175 36.7075 39.4350 -6.79% 2017 37.6378 29.0375 44.1050 29.0050 42.3075 46.11% 2016 26.1510 26.3375 29.5625 22.5850 28.9550 10.03% 2015 30.0096 27.3325 33.2500 25.7800 26.3150 -4.64% 2014 23.0661 19.7546 29.7500 17.8494 27.5950 37.72% 2013 16.8798 19.6082 20.3604 13.9475 20.0364 5.42% 2012 20.5732 14.6868 25.0750 14.6868 19.0062 31.40% 2011 13.0002 11.7704 15.0800 11.2614…
Kim is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year Interest Rate (%) Median home price 1988 10.30 $183,800 1989 10.30 $183,200 1990 10.10 $174,900 1991 9.30 $173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 1995 7.90 $169,700 1996 7.60 $174,500 1997 7.60 $177,900 1998 6.90 $188,100 1999 7.40 $203,200 2000 8.10 $230,200 2001 7.00 $258,200 2002 6.50 $309,800 2003 5.80 $329,800 2004 5.80…
Kim is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year Interest Rate (%) Median home price 1988 10.30 $183,800 1989 10.30 $183,200 1990 10.10 $174,900 1991 9.30 $173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 1995 7.90 $169,700 1996 7.60 $174,500 1997 7.60 $177,900 1998 6.90 $188,100 1999 7.40 $203,200 2000 8.10 $230,200 2001 7.00 $258,200 2002 6.50 $309,800 2003 5.80 $329,800 2004 5.80…
The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year interest rate (%) Median home price 1988 10.30 $183,800 1989 10.30 $183,200 1990 10.10 $174,900 1991 9.30 $173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 1995 7.90 $169,700 1996 7.60 $174,500 1997 7.60 $177,900 1998 6.90 $188,100 1999 7.40 $203,200 2000 8.10 $230,200 2001 7.00 $258,200 2002 6.50 $309,800 2003 5.80 $329,800 2004 5.80 $431,000 2005 5.80 $515,000 2006 6.40 $537,000 2007 6.30 $496,000 2008 6.00 $352,000 2009 5.00 $232,000 2010 4.70 $291,700 2011 4.40 $262,900 2012 3.60 $299,200 2013 4.00 $321,200 2014 4.10 $373,500 2015 3.80 $358,100 2016 3.60 $382,500 2017 4.00 $402,900…
The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year interest rate (%) Median home price 1988 10.30 $183,800 1989 10.30 $183,200 1990 10.10 $174,900 1991 9.30 $173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 1995 7.90 $169,700 1996 7.60 $174,500 1997 7.60 $177,900 1998 6.90 $188,100 1999 7.40 $203,200 2000 8.10 $230,200 2001…
Calculate the mean, variance, and the standard deviation of each security’s annual rate of return. Microsoft Historical Annual Stock Price Data Year Average Stock Price Year Open Year High Year Low Year Close Annual % Change 2021 261.8771 217.6900 308.2300 212.2500 308.2300 38.58% 2020 193.0261 160.6200 231.6500 135.4200 222.4200 41.04% 2019 130.3820 101.1200 158.9600 97.4000 157.7000 55.26% 2018 101.0340 85.9500 115.6100 85.0100 101.5700 18.74% 2017 71.9840 62.5800 86.8500 62.3000 85.5400 37.66% 2016 55.2593 54.8000 63.6200 48.4300 62.1400 12.00% 2015 46.7136 46.7600 56.5500 40.2900 55.4800 19.44% 2014 42.4533 37.1600 49.6100 34.9800 46.4500 24.16% 2013 32.4915 27.6200 38.9400 26.4600 37.4100 40.06% 2012 29.8203 26.7650 32.8500 26.3700 26.7097 2.89% 2011 26.0522 27.9800 28.8700 23.7050 25.9600 -6.99% 2010 27.0584 30.9500 31.3900 23.0100 27.9100 -8.43% 2009 22.9766 20.3300 31.3900 15.1500 30.4800 56.79% 2008 26.6475 35.2200 35.3700 17.5300…
1. Explain, why doesn’t an estimated absolute covariance number tell the investor much about the relationship between the returns on the two assets?
Suppose the following data set contains the monthly adjusted stock prices for technology company A, and a consumer-goods company B from 2013–2018. Copy and paste the data into Excel and use the Excel functions for covariance and correlation to solve the question. Date A B 6/1/2013 46.44 67.71 7/1/2013 52.71 70.54 8/1/2013 56.60 68.98 9/1/2013 59.00 67.00 10/1/2013 63.40 71.44 11/1/2013 67.32 74.99 12/1/2013 70.69 72.55 1/1/2014 63.29 68.40 2/1/2014 66.43 70.68 3/1/2014 70.57 72.38 4/1/2014 77.39 74.08 5/1/2014 82.87 73.11 6/1/2014 88.47 71.17 7/1/2014 90.95 69.05 8/1/2014 97.37 75.73 9/1/2014 96.21 76.29 10/1/2014 102.99 79.42 11/1/2014 113.21 82.84 12/1/2014 105.66 83.43 1/1/2015 112.03 77.35 2/1/2015 122.64 78.64 3/1/2015 119.32 75.77 4/1/2015 120.00 73.58 5/1/2015 124.84 73.14 6/1/2015 120.76 73.01 7/1/2015 116.85 71.61 8/1/2015 108.91 66.66 9/1/2015 106.91 67.82 10/1/2015 115.66 71.89 11/1/2015 114.51 71.09…
The following table reports a portion of the annual returns (in percent) for these two funds from 2000–2016. Data for Case Study 3.2 Returns (in percent) for Janus Funds Year Balanced Overseas 2000-2.16-18.57 2001-5.04-23.11 2002-6.56-23.89 2003-13.74-36.79 2004-8.71-18.58 2005-7.75-32.39 2006-10.56-47.21 2007-10.15-27.76 2008-15.22-52.75 2009-24.28-78.12 2010-7.83-19.28 2011-1.44-32.78 2012-13.07-12.42 2013-19.72-12.1 2014-8.46-13.72 2015-0.60-8.55 2016-4.51-6.91 In a report, use the sample information to 1. Calculate measures of central location to describe the similarities and the differences in these two funds’ returns. 2. Calculate measures of dispersion to assess the risk of each fund. 3. Calculate and interpret measures of correlation between the two funds.
The percentage of individual investors’ portfolios committed to stock depends on the state of the economy. As of April 2014, a typical portfolio consisted of cash (19%), stocks (30%), stock funds (37%), bonds (8%) and bond funds (6%). The following table reports the percentage of stocks in a typical portfolio in eight quarters of 2012 to 2013. Year Quarters Stock % 2012 1 29.8 2012 2 31 2012 3 29.9 2012 4 30.1 2013 1 32.2 2013 2 31.5 2013 3 32 2013 4 31.9 In the first quarter of 2013 the seasonal index of approximately………………. means that values of the time series are …………… by the presence of seasonal forces. A. 100.8416, depressed B. 96.8555, stimulated C. 99.1586, depressed D. 103.2465, stimulated
How strong is the correlation between the inflation rate and 30-year treasury yields? The following data published by Fuji Securities are given as pairs of inflation rates and treasury yields for selected years over a 35-year period. Inflation Rate 30-Year Treasure Yield 1.57% 3.10% 2.23 3.93 2.19 4.68 4.53 6.57 7.25 8.27 9.25 11.93 5.02 10.27 4.62 8.45 Compute the Pearson product-moment correlation coefficient to determine the strength of the correlation between these two variables. Comment on the strength and direction of the correlation. (Round the intermediate values to 4 decimal places. Round your answer to 3 decimal places.) a r= ? b There is a strong negative relationship or strong positive relationship between the inflation rate and the thirty-year treasury yield. ?

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Microsoft Historical Annual Stock Price Data
Year	Average Stock Price	Year Open	Year High	Year Low	Year Close	Annual % Change
2021	261.8771	217.6900	308.2300	212.2500	308.2300	38.58%
2020	193.0261	160.6200	231.6500	135.4200	222.4200	41.04%
2019	130.3820	101.1200	158.9600	97.4000	157.7000	55.26%
2018	101.0340	85.9500	115.6100	85.0100	101.5700	18.74%
2017	71.9840	62.5800	86.8500	62.3000	85.5400	37.66%
2016	55.2593	54.8000	63.6200	48.4300	62.1400	12.00%
2015	46.7136	46.7600	56.5500	40.2900	55.4800	19.44%
2014	42.4533	37.1600	49.6100	34.9800	46.4500	24.16%
2013	32.4915	27.6200	38.9400	26.4600	37.4100	40.06%
2012	29.8203	26.7650	32.8500	26.3700	26.7097	2.89%
2011	26.0522	27.9800	28.8700	23.7050	25.9600	-6.99%
2010	27.0584	30.9500	31.3900	23.0100	27.9100	-8.43%
2009	22.9766	20.3300	31.3900	15.1500	30.4800	56.79%
2008	26.6475	35.2200	35.3700	17.5300	19.4400	-45.39%
2007	30.4459	29.8600	37.0600	26.7200	35.6000	19.22%
2006	26.2908	26.8400	30.1900	21.5100	29.8600	14.19%
2005	25.8710	26.7400	28.1600	23.9200	26.1500	-2.13%
2004	27.1247	27.4500	29.9800	24.1500	26.7200	-2.37%
2003	26.1014	26.8600	29.9600	22.8000	27.3700	5.88%
2002	27.2745	33.5200	34.9300	21.4150	25.8500	-21.96%
2001	31.2712	21.6900	36.8400	21.6900	33.1250	52.72%

Calculate the correlation coefficient between every possible pair of securities’ annual rates of return. Microsoft Historical Annual Stock Price Data Year Average Stock Price Year Open Year High Year Low Year Close Annual % Change 2021 261.8771 217.6900 308.2300 212.2500 308.2300 38.58%