Answer Happy

1. (10 points) Using the pdfetch package, download the monthly stock price of Citigroup (a multinational investment bank and financial services corporation) since January 1, 2011 Citigroup's ticker symbol is c. Suppose we download c along with the S&P 500 index, > ticker <-c("gspe", "c") > yahoodb <- zoo( pdfetch-YAHOO(ticker, fields = "adjclose"from = "2011-01-01", in- terval = "Im")) What is the average stock price of c? What about the minimum and the maximum of c? How many observations are there in c? 2. (10 points) Draw a time series plot of c (on vertical axis) where the time information is on the horizontal axis. Add an appropriate title to the plot. Be sure to include R plot in your answer 3. (10 points) (1) Estimate a regression model with a linear trend for c: c=00+01+ where the regressort is the time trend. (2) Interpret á. Clearly indicate the unit of mea- surement in your interpretation. 4. (10 points) (1) Write the estimated regression equation with an exponential trend for c. (2) Interpret the estimated coefficient on the trend term. Clearly indicate the unit of measurement in your interpretation 5. (10 points) (1) Estimate an AR(1) model for c: that is, C = B + 810-1 + u. (2) Create a readable, organized table of regression outputs which includes the estimation results in Q3. Q4 and 25 (Hint: use the stargazer package). You may want to use a smaller font size (in Home tab) and/or a narrow margin (in Layout tab) in Microsoft Word to present the table nicely.