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