Purchase Solution

Statistical Analysis Of Market Indexes

Not what you're looking for?

Ask Custom Question

The following are monthly percentage price changes for four market indexes

1 0.03 0.02 0.04 0.04
2 0.07 0.06 0.1 -0.02
3 -0.02 -0.01 -0.04 0.07
4 0.01 0.03 0.03 0.02
5 0.05 0.04 0.11 0.02
6 -0.06 -0.04 -0.08 0.06


A - Average monthly rate of return for each index.

B - Standard deviation for each index

C - Covariance between the rates of return for the following indexes:
DIJA- s&p 500
S&P 500-Russel 2000
S&P 500-Nikkei
Russsel 2000-Nikkei

D - The correlation coefficients for the same four combinations.

E - Using the answers from parts (a), (b), and (d), calculate the expected return and standard deviation of a portfolio consisting of equal parts of (1) the S&P and the Russel 2000 and (2) THE S&P and the Nikkei. Discuss the two portfolios.

Purchase this Solution

Solution Summary

This solution discusses monthly percentage price change for four market indexes.

Solution provided by:
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
Recent Feedback
  • "Thank you."
  • "thank you Chidi Ngene.. if you have any APA references would be great"
  • "Thank you so much for your help, your explanations were easy to understand and apply!"
  • "are you able to highlight the equations used either on the xlsx or a word doc as to how each graph was formed- overall looks fine i just need help understanding this myself"
  • "Chidi Ngene, M. Sc. Was extremely helpful as without the help and guidance I would have failed, but with the help I passed. I still have a lot to learn and in need of the guidance to understand and learn more on the subject. I would recommend Chidi Ngene and BrainMass to anyone that are in need of help. Thank you!!"
Purchase this Solution

Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.


This tests some key elements of major motivation theories.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking