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Return of the Stock Assignment | Homework For You

Let’s assume that for each stock the daily percent change is a constant mean and independent from one day to the next. Below is a summary of data for American Airlines (AAL) and United (UAL)Homework For You

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Stock # Samples Mean Std Dev

50 -1.06 8.4
50 -1.46 8.5

AAL    50. -1.06%. 8.4%

UAL. 50 -1.46% 8.5%

a. From this data does it look like the true mean return of the two stocks are different from each other. Pick whatever alpha (except 0 or 100%) you would like to use

b. If we match the return of the stocks by each day the occur we get different data. Get Finance homework help today

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