Quiz 2
Shaye Thyne
9/26/2019
- Q1 Calculate mean yearly returns for each stock.
- Q2 Plot mean yearly returns using bar charts.
- Q3 Label the bars with mean yearly returns.
- Q4 Plot the distribution of yearly returns by stock using kernel density plots.
- Q5 Which of the three stocks has highest chance of losing big when things go wrong? Discuss your reason.
- Q6 Plot the distribution of yearly returns by stock using boxplots.
- Q7 If you were a risk-loving investor (defined as one chasing after the greatest returns even at the risk of losing big), which of the two stocks would you choose? Discuss your reason.
- Q8 Hide the messages, but display the code and their results from the webpage.
- Q9 Display the title and your name correctly at the top of the webpage.
- Q10 Use the correct slug.
In this exercise you will learn to plot data using the ggplot2 package. To answer the questions below, use 4.1 Categorical vs. Categorical from Data Visualization with R.
## # A tibble: 22,230 x 8
## # Groups: symbol [3]
## symbol date open high low close volume adjusted
## <chr> <date> <dbl> <dbl> <dbl> <dbl> <dbl> <dbl>
## 1 AAPL 1990-01-02 1.26 1.34 1.25 1.33 45799600 1.08
## 2 AAPL 1990-01-03 1.36 1.36 1.34 1.34 51998800 1.09
## 3 AAPL 1990-01-04 1.37 1.38 1.33 1.34 55378400 1.10
## 4 AAPL 1990-01-05 1.35 1.37 1.32 1.35 30828000 1.10
## 5 AAPL 1990-01-08 1.34 1.36 1.32 1.36 25393200 1.11
## 6 AAPL 1990-01-09 1.36 1.36 1.32 1.34 21534800 1.10
## 7 AAPL 1990-01-10 1.34 1.34 1.28 1.29 49929600 1.05
## 8 AAPL 1990-01-11 1.29 1.29 1.23 1.23 52763200 1.00
## 9 AAPL 1990-01-12 1.22 1.24 1.21 1.23 42974400 1.00
## 10 AAPL 1990-01-15 1.23 1.28 1.22 1.22 40434800 0.997
## # … with 22,220 more rows## # A tibble: 90 x 3
## # Groups: symbol [3]
## symbol yearly.returns year
## <chr> <dbl> <dbl>
## 1 AAPL 0.169 1990
## 2 AAPL 0.323 1991
## 3 AAPL 0.0691 1992
## 4 AAPL -0.504 1993
## 5 AAPL 0.352 1994
## 6 AAPL -0.173 1995
## 7 AAPL -0.345 1996
## 8 AAPL -0.371 1997
## 9 AAPL 2.12 1998
## 10 AAPL 1.51 1999
## # … with 80 more rowsQ1 Calculate mean yearly returns for each stock.
Hint: See the code in 4.3.1 Bar chart (on summary statistics).
## # A tibble: 3 x 2
## symbol mean_returns
## <chr> <dbl>
## 1 AAPL 0.366
## 2 IBM 0.141
## 3 MSFT 0.283Q2 Plot mean yearly returns using bar charts.
Hint: See the code in 4.3.1 Bar chart (on summary statistics).
Q3 Label the bars with mean yearly returns.
Hint: See the code in 4.3.1 Bar chart (on summary statistics).
Q4 Plot the distribution of yearly returns by stock using kernel density plots.
Hint: See the code in 4.3.2 Grouped kernel density plots.
Q5 Which of the three stocks has highest chance of losing big when things go wrong? Discuss your reason.
Hint: Google how to interpret density plots.
IBM has the highest chance of losing big when things go wrong because they have the most to lose as their density returns passes 1.2 which would be the worst out of the three stocks.
Q6 Plot the distribution of yearly returns by stock using boxplots.
Hint: See the code in 4.3.3 Box plots.
Q7 If you were a risk-loving investor (defined as one chasing after the greatest returns even at the risk of losing big), which of the two stocks would you choose? Discuss your reason.
I would choose IBM and Microsoft because they have the most risk. They have the highest density. IBM has over 1.2 and Microsoft has about 1. This is a risky stock incase if something goes wrong but could be worth it in the long run.
Q8 Hide the messages, but display the code and their results from the webpage.
Hint: Use message, echo and results in the global chunk options. Refer to the RMarkdown Reference Guide.