In an in the “Journal of Portfolio Management” concerning the annualized investment risk and credit rating for each of the 40 countries is given below. Do some exploratory data analysis on this data using the techniques you have learned while SPSS was demonstrated to you. Highlight any findings which you find from this exploratory data analysis. Now prepare a scatter diagram to see the relationship between the given two variables. What kind of relationship do you find? Build a model to fit this relationship. Which countries have an investment risk which is substantially larger than would be suggested by their credit rating? Which countries have an investment risk which is substantially smaller than would be suggested by their credit rating? Discuss different findings from the model you have fitted on this data. Country Argentina Australia Austria Belgium Brazil Canada Chile Colombia Risk 87.0 26.9 26.3 22.0 64.8 19.2 31.6 31.5 Rating 31.8 78.2 83.8 78.4 36.2 87.1 38.6 44.4 Country Denmark Finland France Germany Greece HK India Ireland Risk 20.6 26.1 23.8 23.0 39.6 34.3 30.0 23.4 Rating 72.6 76.0 85.3 93.4 51.9 69.6 46.6 66.4 Country Italy Japan Jordan Korea Malaysia Mexico Netherland New Zealand Risk 28.0 25.7 17.6 30.7 26.7 46.3 18.5 26.3 Rating 75.5 94.5 33.6 62.2 64.4 43.3 87.6 68.9 Country Nigeria Norway Pakistan Philippines Protugal Singapore Spain Sweden Risk 41.4 28.3 24.4 38.4 47.5 26.4 24.8 24.5 Rating 30.6 83.0 26.4 29.6 56.7 77.6 70.8 79.5 Country Switzerland
