Proceedings of the 2013 International Conference on Advances in Social Science, Humanities, and Management

Analysis and Prediction about Yields Rate of Security Investment Based on R Software

Authors
Lu Wang, Yingying Zhang
Corresponding Author
Lu Wang
Available Online December 2013.
DOI
10.2991/asshm-13.2013.31How to use a DOI?
Keywords
R Software, Portfolio Selection, Rate of Yield, Normal Distribution Fitting, Test of Normality, Prediction, Exponential Smoothing
Abstract

With the fantastic spurt of science and modern technology throughout the world, employing statistical techniques as the guidance of investment has become a new trend in finance field. R software is providing us a scientific platform for effective investment. Using R software as a basic tool, this paper discusses in detail about the normality hypothesis of yields rate which plays a significant role in the portfolio selection theory by Harry Markowitz. Firstly, we conduct normal distribution fitting of the hypothesis through line chart, histogram, curve of kernel density estimation, curve of empirical distribution function, and QQ chart. Secondly, we verify the normality hypothesis by the Shapiro-Wilk test and the Kolmogorov-Smirnov test. Finally we use the expectancy method and the exponential smoothing to make corresponding prediction, and arrive at the conclusion that the exponential smoothing is superior to the expectancy method.

Copyright
© 2013, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2013 International Conference on Advances in Social Science, Humanities, and Management
Series
Advances in Intelligent Systems Research
Publication Date
December 2013
ISBN
978-90-78677-93-2
ISSN
1951-6851
DOI
10.2991/asshm-13.2013.31How to use a DOI?
Copyright
© 2013, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Lu Wang
AU  - Yingying Zhang
PY  - 2013/12
DA  - 2013/12
TI  - Analysis and Prediction about Yields Rate of Security Investment Based on R Software
BT  - Proceedings of the 2013 International Conference on Advances in Social Science, Humanities, and Management
PB  - Atlantis Press
SP  - 171
EP  - 176
SN  - 1951-6851
UR  - https://doi.org/10.2991/asshm-13.2013.31
DO  - 10.2991/asshm-13.2013.31
ID  - Wang2013/12
ER  -