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computing the monthly returns and monthly standard deviation

Posted: Thu Nov 19, 2015 1:32 pm
by Hamdooey
Hi, I was wondering if anyone could help me to compute monthly returns and also monthly standard deviations on some stocks I have identified. I have imported the data into EViews but do not know where to go from there in order to get the monthly returns and standard deviations of these stocks.
Any help would be greatly appreciated, Thanks.

Re: computing the monthly returns and monthly standard devia

Posted: Thu Nov 19, 2015 1:35 pm
by EViews Gareth
How are you defining a return? What do you mean by monthly standard deviation?

Re: computing the monthly returns and monthly standard devia

Posted: Thu Nov 19, 2015 1:45 pm
by Hamdooey
I am calculating the monthly return from the adjusted closing prices and standard deviation by looking at how the monthly return differs from the mean.

Re: computing the monthly returns and monthly standard devia

Posted: Thu Nov 19, 2015 2:24 pm
by EViews Gareth
That doesn't help much.

What is the mathematical definition of what you're trying to do?

Re: computing the monthly returns and monthly standard devia

Posted: Thu Nov 19, 2015 3:27 pm
by startz
What is the frequency of your data?

Re: computing the monthly returns and monthly standard devia

Posted: Fri Nov 20, 2015 4:06 am
by Hamdooey
I have a question for an assignment and this is all I was given:
A Wealth manager from a major bank would like to allocate funds into Mining firms listed on the FTSE100 index. He has hired you to perform the econometric analysis which will inform his investment decision.

Using the historical prices tab on the Yahoo Finance UK website and the EViews software, compute the monthly returns and monthly standard deviation of each of the stocks listed in part a) for the period January 1, 2010 to October 9, 2015. The monthly returns should be calculated from the adjusted closing prices. Using the monthly returns calculated, rank all mining stocks in terms of 1) monthly average return and 2) monthly risk (standard deviation). Present the averages and standard deviations and discuss the general pattern in the rankings that you have produced.

The stocks listed are mining compnies

Re: computing the monthly returns and monthly standard devia

Posted: Fri Nov 20, 2015 6:54 am
by EViews Gareth
If you can figure out mathematically what you want to do, someone can probably help you do it in EViews

Re: computing the monthly returns and monthly standard devia

Posted: Fri Nov 20, 2015 6:56 am
by startz
Okay, tell us what you've done so far.

Re: computing the monthly returns and monthly standard devia

Posted: Fri Nov 20, 2015 7:04 am
by trubador
I think this is also one of the purposes of your assignment. You should figure it out on your own. Below are two useful hints for you:

http://www.eviews.com/help/helpintro.ht ... 01.html%23
http://www.eviews.com/help/helpintro.ht ... 010.8.html