Compute daily volatilities of the S&P500 return and bond returns, using a “3-year rolling window’. (that is, for every t, compute those quantities from t — 3 years to t. Clearly, you need to begin in 1990.)
Business Question The file 433.Assignment 01.csv (available at Canvas) contains daily data on S&P500 index and the Vanguard Total Bond Market Index Fund from 1987 to 2014. The Vanguard Bond fund is designed to provide broad exposure to U.S. investment-grade bonds. To be more specific, the fund invests about 30% in corporate bonds and 70% […]