1. Use the monthly data (September 2013 - November 2014) provided on the closing prices for Gold (GLD), NASDAQ, Oil (USO) and Facebook (FB).

Question

Date GLD NASDAQ USO FB
Sep-13 128 3771 37 50
Oct-13 128 3920 35 50
Nov-13 121 4060 33 47
Dec-13 116 4177 35 55
Jan-14 120 4104 35 63
Feb-14 128 4308 37 68
Mar-14 124 4199 37 60
Apr-14 124 4115 36 60
May-14 120 4243 38 63
Jun-14 128 4408 39 67
Jul-14 123 4370 36 73
Aug-14 124 4580 36 75
Sep-14 116 4493 34 79
Oct-14 113 4631 31 75
Nov-14 115 4713 29 74
a. What is the approximate value of mean absolute percentage error (MAPE) of forecasting based on 3 months moving average for GLD prices?

3.81%

8.74%

3.44%

8.54%
b. What is the risk as measured by the standard deviation of monthly return for Oil during the sample period?

7.90%

5.19%

2.80%

4.20%
c. What is the approximate value of mean absolute error (MAE) of forecasting based on 5 months moving average for GLD prices?

5.89

4.56

4.10

6.08

d. What is the correlation between prices of NASDAQ and Facebook during the sample period?

0.89

-0.54

0.73

-0.44
e. What is the mean monthly return for Oil during the sample period?

-1.60%

-0.68%

3.12%

1.64%