Calculate the arithmetic average monthly rate of return for each stock. Excel Function: =Average(monthly returns array)
Develop a comprehensive network design document.
August 4, 2017Pick three individual countries, one in the Middle East, one in Asia, and one in Europe. Apply Hofstedes characteristics to each one, and state if the characteristic is low, medium, or high in each country.
August 4, 2017Calculate the arithmetic average monthly rate of return for each stock. Excel Function: =Average(monthly returns array)
You are to select two stocks and collect five years of month-end stock price data for each stock (December 31, 2010 January 31, 2016). Please use Yahoo! Finance adjusted closing prices.
Please complete the following, using the related Excel functions to answer questions 2-5:
- Calculate monthly returns for each stock.
- Calculate the arithmetic average monthly rate of return for each stock.
Excel Function: =Average(monthly returns array)
- Calculate the geometric average monthly rate of return for each stock.
- First add 1 to each monthly return
- Excel Function: =geomean(monthly returns array) 1
- Calculate the standard deviation of monthly returns for each stock.
Excel Function: =stdev(monthly returns array)
- Calculate the correlation between the two stocks.
Excel Function: =correl(Stock 1 monthly returns array, Stock 2 monthly returns array)
What to turn in:
- One Excel spreadsheet with:
- The following columns with the appropriate titles in Row A. Make sure that the latest month is listed first:
Column 1: Month, Year
Column 2: Adjusted Closing Prices for stock 1
Column 3: Adjusted Closing Prices for stock 2
Column 4: Monthly Returns (calculated) for stock 1 format to percentage
Column 5: Monthly Returns (calculated) for stock 2 format to percentage
- Your answers to the questions 2- 5 above. This should be immediately below monthly prices and returns on your spreadsheet. Please label each answer appropriately.
