Portfolio Management
19) The spreadsheet 1.1W,I_Q19 has weekly data for Apple and Royal Caribbean stocks over a three-year period, and weekly Fama-French Three Factor returns over the same time period.
a) What is the sample correlation between Mkis the fore and RCI. over t that time period?
b) If one is sitting at the end of the period, what is fore future correlation between Mil and Ra. using the Fama-French Three Factor Model?
c) Why is a) bigger or smaller than b)?
Use the spreadsheet 1.1W,I_Q19 which has weekly data for Apple and Royal Caribbean stocks. What is the sample correlation between Mkis the fore and RCI. over t that time period?
