Unemployment

Case Problem 3: Measuring Stock trade in Risk Variable N incriminate StDev Minimum Median Maximum Microsoft 36 0.00503 0.04537 -0.08201 0.00400 0.08883 Exxon Mobil 36 0.01664 0.05534 -0.11646 0.01279 0.23217 big cat 36 0.03010 0.06860 -0.10060 0.04080 0.21850 Johnson & Johnson 36 0.00530 0.03487 -0.05917 -0.00148 0.10334 McDonalds 36 0.02450 0.06810 -0.11440 0.03700 0.18260 Sandisk 36 0.06930 0.19540 -0.28330 0.07410 0.50170 Qualcomm 36 0.02840 0.08620 -0.12170 0.03870 0.21060 Procter & pretend 36 0.01059 0.03707 -0.05365 0.01333 0.08783 S&P cholecalciferol 36 0.01010 0.02633 -0.03429 0.01034 0.08104 From the descriptive statistics we con that six of the companies had a higher(prenominal) mean monthly increase than the market (as mensural by the S&P calciferol): Exxon Mobil, Caterpillar, McDonalds, Sandisk, Qualcomm, and Procter & encounter. Microsoft and Johnson & Johnson had sink mean monthly returns. development the standard aberrance as a bill of volatility, Sandisk was the almost mercurial stock with a standard deviation of .1954.

The stocks of Johnson & Johnson and P & G exhibit slight volatility than the some another(prenominal) person stocks. But, all of the one-on-one stocks are more evaporable than the market as a whole. The diversification embodied in the S&P cholecalciferol reduces its volatility. The estimated regression par relating from to distributively one one of the individual stocks to the S&P 500 is shown below. The value of for each equation is also shown. Microsoft = 0.00040 + 0.458 S&P 500R-Sq = 7.1% Exxon Mobil = 0.00926 + 0.731 S&P 500R-Sq = 12.1% Caterpillar = 0.015000 + 1.49 S&P 500R-Sq = 32.9% Johnson & Johnson = 0.00521 + 0.009 S&P 500R-Sq = 0.0% McDonalds = 0.00930 + 1.500 S&P 500R-Sq = 33.8% Sandisk = 0.04300 + 2.600 S&P 500R-Sq = 12.3% Qualcomm = 0.01410 + 1.410 S&P 500R-Sq = 18.7% Procter & Gamble = 0.00548 +...If you want to get a luxuriant essay, order it on our website: Orderessay

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