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Business, 23.11.2019 05:31 mjohn6150

A. plot the stock price, yen/$ exchange rate and their returns. by looking at the plots, comment on the stationarity of the series.
b. obtain the correlogram (autocorrelation function) for each of the series and comment on stationarity (or non-stationarity).
c. using augmented dickey-fuller test (adf), test whether prices have a unit root or not.
eviews instructions:
double click on the variable of interest. next click:
view-> unit root test->
use a specification with "intercept" for the unit root tests. note that in eviews you would need to click on one of the options (e. g. intercept).
r instructions: see my sample programs in module 3
d. using augmented dickey-fuller test, test whether returns of all series
have a unit root or not (use "intercept" specification).

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