EX6_Risk___Retur111n - sheet1 Q1 The following are the...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
sheet1 Page 1 Q1. The following are the prices for the Standard & Poor's 500 Index and for the common stock of Microsoft at the end of each month over a five year period. Q1 (a) Standard & Poor's 500 Index Microsoft Common Stock Month Price Returns Price Returns 0 $331.89 N/A $10.97 N/A 1 $342.00 3.05% $12.31 12.22% 12.22% 2 $332.03 -2.92% $12.89 4.71% 4.71% 3 $360.86 8.68% $16.22 25.83% 25.83% 4 $355.14 -1.59% $16.89 4.13% 4.13% 5 $357.09 0.55% $14.78 -12.49% -12.49% 6 $324.19 -9.21% $13.67 -7.51% 7 $305.06 -5.90% $14.00 2.41% 8 $304.00 -0.35% $14.17 1.21% 9 $317.95 4.59% $16.06 13.34% 10 $330.85 4.06% $16.72 4.11% 11 $340.91 3.04% $21.81 30.44% 12 $367.74 7.87% $23.06 5.73% 13 $375.35 2.07% $23.58 2.25% 14 $382.76 1.97% $22.00 -6.70% 15 $382.79 0.01% $24.39 10.86% 16 $371.59 -2.93% $22.71 -6.89% 17 $387.81 4.37% $24.50 7.88% 18 $396.64 2.28% $28.42 16.00% 19 $386.88 -2.46% $29.67 4.40% 20 $392.96 1.57% $31.29 5.46% 21 $376.55 -4.18% $32.42 3.61% Calculate the returns for each. [Hint: To obtain a return, use return = (P 1 - P 0 ) / P 0 ]
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
sheet1 Page 2 22 $417.09 10.77% $37.08 14.37% 23 $410.34 -1.62% $40.08 8.09% 24 $415.35 1.22% $41.17 2.72% 25 $407.52 -1.89% $39.50 -4.06% 26 $412.02 1.10% $36.75 -6.96% 27 $412.17 0.04% $40.33 9.74% 28 $403.83 -2.02% $35.00 -13.22% 29 $422.23 4.56% $36.38 3.94% 30 $413.51 -2.07% $37.25 2.39% 31 $417.80 1.04% $40.25 8.05% 32 $420.13 0.56% $44.38 10.26% 33 $429.19 2.16% $46.56 4.91% 34 $438.82 2.24% $42.69 -8.31% 35 $438.11 -0.16% $43.25 1.31% 36 $440.87 0.63% $41.69 -3.61% 37 $451.67 2.45% $46.25 10.94% 38 $438.02 -3.02% $42.75 -7.57% 39 $453.44 3.52% $46.31 8.33% 40 $450.53 -0.64% $44.00 -4.99% 41 $447.19 -0.74% $37.00 -15.91% 42 $460.13 2.89% $37.56 1.51% 43 $460.11 0.00% $41.25 9.82% 44 $464.61 0.98% $40.06 -2.88% 45 $462.36 -0.48% $40.00 -0.15% 46 $470.58 1.78% $40.31 0.78% 47 $473.20 0.56% $42.56 5.58% 48 $470.69 -0.53% $41.25 -3.08% 49 $445.55 -5.34% $42.38 2.74% 50 $451.87 1.42% $46.25 9.13% 51 $456.34 0.99% $53.75 16.22% 52 $447.63 -1.91% $51.63 -3.94% 53 $452.57 1.10% $51.50 -0.25%
Image of page 2
sheet1 Page 3 54 $475.49 5.06% $58.13 12.87% 55 $464.84 -2.24% $56.13 -3.44% 56 $462.62 -0.48% $63.00 12.24% 12.24% 57 $453.69 -1.93% $62.88 -0.19% -0.19% 58 $460.86 1.58% $61.13 -2.78% -2.78% 59 $467.44 1.43% $59.38 -2.86% -2.86% 60 $485.07 3.77% $63.00 6.10% 6.10% Q1 (b) Calculate the expected returns (same as the average return).
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern