Dow Jones Market Portfolio - Essay Example

Unit al affiliation: Descriptive statistics Descriptive statistics involves the analysis of data that helps describe, show and summarize data in a meaningful way that patterns may emerge from the data. In 2008 the world economy faced its most dangerous crisis. Dow Jones Industrial Average in the United States lost 33.85 of its value during this year of crisis and by the end of the year, a deep recession had enveloped most of the globe. With reference to the descriptive statistics, the location and dispersion were taken into considerations in analyzing the Dow Jones market portfolio with reference to a 3 month treasury based on standard deviation of the market considering the a 70% portfolio before crash and 30% after crash. Below is the data collected on the Dow Jones market based on the CAPM 2 month analysis before the 2008 crash, and 2 months after the 2008 crash based on time series data for daily Dow Jones industrial average, and the interest rates. Before After 1 13264.82 7062.930 2 13365.87 7182.080 3 13359.61 7270.890 4 13551.69 7350.940 5 13550.04 7114.780 6 13450.65 7365.670 7 13245.64 7465.950 8 13207.27 7555.630 Model 1: OLS, using observations 1-39 Dependent variable: Before Coefficient Std. Error t-ratio p-value const 13662.8 607.906 22.4752 Read More