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Download the spreadsheet from My Finance Lab that contains historical monthly prices and dividends (paid at the end of the month) for Motor Company...

10. Download the spreadsheet from My Finance Lab that contains historical monthly prices and dividends (paid at the end of the month) for Motor Company Stock (Ticker: F) from August 1994 to August 1998. Calculate the realized return over this period, expressing your answer in percent per month.
This is the Spreadsheet from My Finance Lab
Aug-94 29.25
Sep-94 27.75
Oct-94 29.50 0.260
Nov-94 27.13
Dec-94 27.88
Jan-95 25.25 0.260
Feb-95 26.13
Mar-95 26.88
Apr-95 27.13 0.310
May-95 29.25
Jun-95 29.75
Jul-95 29.00 0.310
Aug-95 30.75
Sep-95 31.13
Oct-95 28.75 0.350
Nov-95 28.25
Dec-95 28.88
Jan-96 29.50 0.350
Feb-96 31.25
Mar-96 34.38
Apr-96 35.88 0.350
May-96 36.50
Jun-96 32.38
Jul-96 32.38 0.385
Aug-96 33.50
Sep-96 31.25
Oct-96 31.25 0.385
Nov-96 32.75
Dec-96 32.25
Jan-97 32.13 0.385
Feb-97 32.88
Mar-97 31.38
Apr-97 34.75 0.420
May-97 37.50
Jun-97 38.00
Jul-97 40.88 0.420
Aug-97 43.00
Sep-97 45.13
Oct-97 43.69 0.420
Nov-97 43.00
Dec-97 48.56
Jan-98 51.00 0.420
Feb-98 56.56
Mar-98 64.81
Apr-98 45.81 21.515
May-98 51.88
Jun-98 59.00
Jul-98 57.00 0.420
Aug-98 44.63




11. Using the same data in problem 10 compute the
(A) average monthly return over this period
(b) Monthly volatility (or standard deviation) over this period.

12: Explain the difference between the average return you calculated in Problem 11(a) and the real-ized return you calculated in Problem 10. Are both numbers useful? If so explain why.

Note: we are only solving Problem 12, but we need to solve 10 and 11 in order to solve 12



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