FIGURE 14.2 Four Economic Time Serles Percent Dollars per pound 11r 1아 3.0r 2.5 2.아 1.5- 1.0 0.5 - 0.0L 1960 1970 1980 1990 2000 2010 2012 1960 1970 1980 1990 2000 2010 2012 (a) U.S. Unemployment Rate (b) U.S. Dollar/British Pound Exchange Rate Percent per day Logarithm 12.5 5.0r 10.0 7.5 4.5- 5.0 2.5 4.0- 0.0 3.5- -2.5 -5.0 3.0- -7.5 25 1960 1970 1980 1990 2000 2010 2012 -10.0 1990 1994 1998 2002 2006 2010 (c) Logarithm of Index of Industrial Production in Japan (d) Percentage Change in Daily Values of the Wilshire 5000 Stock Price Index The four time series have markedly different patterns. The unemployment rate (Figure 14.2a) increases during recessions and declines during recoveries and expansions. The exchange rate between the U.S. dollar and the British pound (Figure 14.2b) shows a discrete change after the 1972 collapse of the Bretton Woods system of fixed exchange rates. The logarithm of the index of industrial production in Japan (Figure 14.2c) shows a pat- tern of decreasing growth. The daily percentage changes in the Wilshire 5000 stock price index (Figure 14.2d) are essentially unpredictable, but the variance changes: This series shows "volatility clustering."

I need some help with the following problems on excel.

From the data in the table it shows the 2019 daily return data for the S&P 500 Index (stocks) and the US 30 year Bond (bonds). How do I test the hypothesis that mean daily return on stocks exceeds the mean daily return on bonds? Please show the steps. S&P500 dailt returns data: Date Price Daily Return 2019-12-31 3230.78 0.294602% 2019-12-30 3221.29 -0.578082% 2019-12-27 3240.02 0.003398% 2019-12-26 3239.91 0.512817% 2019-12-24 3223.38 -0.019545% 2019-12-23 3224.01 0.086614% 2019-12-20 3221.22 0.494478% 2019-12-19 3205.37 0.445929% 2019-12-18 3191.14 -0.043230% 2019-12-17 3192.52 0.033529% US 30 Year Bond Date Price Daily Return 31-Dec-19 2.389 2.32% 30-Dec-19 2.335 0.78% 29-Dec-19 2.317 -0.03% 27-Dec-19 2.318 -0.16% 26-Dec-19 2.321 -0.71% 25-Dec-19 2.338 0.15% 24-Dec-19 2.334 -0.83% 23-Dec-19 2.354 0.31% 22-Dec-19 2.346 0.12% 20-Dec-19 2.344 -0.43%

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA= 2.0% + 0.40RM + eA RB = -1.8%+ 0.9RM + eB OM = 15%; R-squareA = 0.30; R-squareB = 0.22 What is the standard deviation of each stock? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock A Stock B Standard Deviation % %