ECON 424 Midterm: ECON 424 UW Midtermsummer01
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This is a closed book and closed note exam. However, you are allowed one page of handwritten notes. Answer all questions and write all answers in a blue book or on separate sheets of paper. Time limit is 2 hours and 10 minutes. Total points = 100: return calculations (15 pts) Use the end of month price data for the s&p 500 index in the table below to answer the following questions. Suppose you can get this return every year for the next five years. Let x be a continuous random variable with pdf p(x). Consider the monthly continuously compounded returns on boeing, microsoft and the s&p 500 computed over the period june 1992 october 2000. Descriptive statistics for these returns are given in the table below and histograms, boxplots and scatterplots are presented on the following pages. Based on the descriptive statistics and graphs, answer the following questions: compare the return risk properties of the three assets.
