I need help understanding how to do this. What's the mean annual return of the S&P 400 Midcap Index over the past 7 years? What's the standard deviation? What's the mean annual return of the NASDAQ-100 Index over the past 7 years? Calculate a coefficient of correlation of the two indexes' return. Explain what may be causing the changes in the indexes' return over the past 7 years.

Question
Asked May 8, 2019
36 views

I need help understanding how to do this. 

What's the mean annual return of the S&P 400 Midcap Index over the past 7 years? What's the standard deviation? What's the mean annual return of the NASDAQ-100 Index over the past 7 years? Calculate a coefficient of correlation of the two indexes' return. Explain what may be causing the changes in the indexes' return over the past 7 years. 

check_circle

Expert Answer

Step 1

Hello there!there are more than three sub-parts in the given question. According to our policies cannot answer more than three subparts. Please find how to fin mean annual return, Standard deviation and correlatoin coefficient of two indexes. If you have doubt in last part kindly make a new request.

The mean annual return of the S&P midcap Index over past 7 years is the average of annual return of S&P midcap Index. It can be calculated by adding the annual return of S&P midcap Index of past seven years and dvide by 7 to find the mean annual return of the S&P midcap Index,

Step 2

Standard deviation is the average of the deviation of data points from its mean which tell us about the spread in the data distribution. Standard deviation of S&P 400 Midcap Index can be found by using the below...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Math

Statistics

Related Statistics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Is there a difference in the weights of contents in a can of Diet Coke versus a regular can of Coke?...

A: Solution:Null and alternative hypotheses:Null hypothesis: µ1−µ2 = 0Alternative hypothesis: µ1−µ2 ≠ 0...

question_answer

Q: A, B, C

A: a.The two populations are ‘all the students who purchase lecture notes’ and ‘all the students who do...

question_answer

Q: Part G-I, explain TI84 USE IF APPLICABLE

A: g) Computation of F-statistic:F-statistic can be obtained by dividing the mean square of model by th...

question_answer

Q: How would I construct a stem and leaf plot using these numbers 57 54 52 55 51 56 61 68 56 55 54 61 5...

A: Introduction:The numbers here are all two-digit numbers. So, you can consider the digit in the ten’s...

question_answer

Q: 2.) Two distinct fair dice are rolled at the same time and the number of dots appearing on both are ...

A: Probability that the sum is 3It is possible only in following combinations:Dice one has 1 dice and d...

question_answer

Q: Using the data below, determine whether the proportion for each group is equal using a 5% significan...

A: According to the given question, to test whether the proportion for each group is equal using a 5% l...

question_answer

Q: How much does a sleeping bag cost? Let's say you want a sleeping bag that should keep you warm in te...

A: (a)Using the provided data, the sample mean and standard deviation can be calculated using Excel fun...

question_answer

Q: A group of data items and their mean are given. 12, 20, 28, 48, 72, 108;  Mean=48 A. Type the deviat...

A: A.Computing the deviation from mean for each of the data:Here the data items are 12, 20, 28, 48, 72,...

question_answer

Q: Exam grades: scores on a statistics final in a large class were normally distributed with a mean of ...

A: Let X be the scores on statistics final, which is normally distributed with mean = 75 and standard d...