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Please do not submit any financial statements-just the answers and any calculations.

Using the annualized returns on 10-year treasury constant maturity rate bonds, the common equity of the Kellogg Company, and the S&P 500 index, calculate the following statistical measures:

? mean (of each individual asset),
? standard deviation (of each individual asset),
? variance (of each individual asset),
? skewness (of each individual asset),
? kurtosis (of each individual asset),
? covariance (between each pair of assets), and
? correlation coefficient (between each pair of assets).

NOTES:
1. If the data, as in the cases of Kellogg and the S&P 500 index, are given in terms of the price/level. You will need to:
 use the holding period return to calculate the monthly return, and

 convert the monthly return to the annualized return.

2. The data for Kellogg (K) and the S&P 500 Index ($INX) can be obtained from MSN Money - http://moneycentral.msn.com/home.asp . A help file for MSN Money is here - http://home.ubalt.edu/staff/ntsbschr/Student Help Files/Using Money Central.doc . Data on 10-year treasury constant maturity rate bonds can be from the FRED2 database - http://research.stlouisfed.org/fred2/ . A help file for FRED 2 is here - http://home.ubalt.edu/staff/ntsbschr/Student Help Files/Using FRED 2.doc .
3. For your calculations, please use monthly price data for ten years (ending June 2004).

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The answers are as follows: ( I have attached the spreadsheet as the formatting might get spoiled in pasting)
<br> 10Year Bond Kellog & Co. S&P500
<br>Mean 6% 2% 11%
<br>St. ...

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