Assignment:
1) Construct the frequency distributions (including relative frequency and cumulative frequency) for S&P/ASX 200 index and for your company's stock prices. Use 25 intervals.
2) Based on returns calculated in (A.3), obtain a histogram for S&P/ASX 200 daily index return and a histogram for your company's stock daily returns. Use the number of bins of 25.
3) Based on returns calculated in (A.3), calculate the values of (i) mode, (ii) median, (iii) mean, (iv) first quartile.
4) Calculate the mean values and the standard deviation of daily returns for S&P/ASX 200 index for the first year and second year respectively. Obtain the percentage of values that are within one and two standard deviations of the mean. Which year of return has a larger variation? Give reason(s).
5) Calculate target semi-variance of daily returns for S&P/ASX 200 index and your allocated company, where the target is the S&P/ASX200 or company incur daily loss.
6) Compare the total risk of your allocated company versus that of S&P/ASX200 over the sample period. Does the conclusion change if you compare the coefficients of variation?
7) Does the distribution of daily return for S&P/ASX 200 index and your allocated company have negative or positive skewness (comparing with Normal distribution) during the sample period? Give evidence for your conclusion.
8) Do you think the distribution of daily returns of S&P/ASX 200 index is different from the distribution of daily returns of your company's stock? Provide evidence.