Question

Problem 2. 16 pts] Wells Fargo, Netflix, RBC (U:RY) stocks have the following annual returns from the year 2011 to 2018. (Show vour calculations) Stocks>> Wells Fargo Netflix RBC (U:RY) 2011 2012 2013 2014 2015 2016 2017 2018 0.170 0.127 0.240 0.328 0.207 0.008 0.014 0.101 2.239 0.612 0.336 2.976 -0.072 1.344 0.082 0.551 0.014 0.035 0.183 0.115 0.027 0.224 0.264 0.206 Source: Thomson Reuters Datastream. Note. All figures are in three decimal places. Using the data in the table above,complete the following questions: a. Compute the correlation coefficient between Netflix and Wells Fargo returns (round to 2 decimal places) b. Compute the correlation coefficient between Netflix and RBC returns (round to 2 decimal places) c. Compute the correlation coefficient between Wells Fargo and RBC returns (round to 2 decimal places)

Answer 1

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E " ゴWrap Text aCopy в 1 프· ー· 鱼, Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Alignment Number Cells FN45 FM WELLS FARGO NETFLIX RBC FI FK FL FN FO FP FQ FR FS FT FU FV 28 29 30 31 32 YEAR 0.172.239-0.014 2-0.127 -0.612 -0.035 0.24 0.336 0.183 4 0.328 2.976 0.115 5 0.2070.0720.027 6 -0.008 1.344 -0.224 70.0140.082 0.264 8 0.101 0.551 0.206 34 35 36 37 38 39 40 41 42 43 CORRELATION COSEEFICIENT BETWEEN NETFLIX & WELLS FARGO NETFLIX & RBC WELLS FARGO & RB 0.59 0.16 0.33 CORREL(FM30:FM37,FN30:FN37) CORREL(FN30:FN37,FO30:FO37) CORREL(FM30:FM37,FO30:FO37) 45 46 DEAR / Sheet2. COV TIME SERIES COIT REGRESSION CAMERAEXP RETURN ( TREND MATRDX INTERVAL, NORMALHYPOTHESIS 31-01-2019