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Unformatted text preview: Risk and Return Calculations Note: use a computer spreadsheet to work the following problems. Data is on BB . 1. Use the price data from blackboard for the Market Index, Reynolds Computer, and Andrews to calculate the holding-period returns for the 24 months ending May 2003 (i.e., for each month). 2. Calculate the average monthly holding-period return and the standard deviation of these returns for the Market Index, Reynolds Computer, and Andrews. 3. Plot (a) the holding-period returns for Reynolds Computer against the Market Index, and (b) the Andrews holding-period returns against the Market Index (i.e., market on the horizontal axis). 4. From your graphs in question 3, describe the nature of the relationship between the Reynolds Computer stock returns and the returns for the Market Index. Make the same comparison for Andrews. 5. Assume that you have decided to invest one-half of your money in Reynolds Computer and the...
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This note was uploaded on 11/16/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.
- Summer '11