From her Investment Analysis class. Laura has been given an assignment to evaluate several securities on a risk-return tradeoff basis. The specific securities to be researched are International Business Machines, Helmerich & Payne. Inc.. and the S&P 500 Index. The respective ticker symbols for the stocks are IBM and HP. She finds the following data on the securities in question.

Note: The value of the $&P 500 index includes dividends Questions Part One
Use the data that Laura has found on the 3 securities and create a spreadsheet to calculate the holding period return for each year and the average return over a 5-year period. Specifically, the HPR will be based upon 5 unique periods of 1 year (i.e.. 2006 to 2007, 2007 to 2008. 2008 to 2009. 2009 to 2010, 2010 to 2011). Use the following formula:
H PR = (Inc + (Vn, - Vo)]/Vo
Where
Inc = income during period
Vn = ending investment value
Vo = beginning investment value
Part TWO
Create a spreadsheet similar to the spreadsheet for Table 4.9 (on page 139), which can be viewed at www.myfinancelab.com, in order to evaluate the risk-return tradeoff.
b. Calculate the standard deviations of the returns for IBM, HP, and the S&P 500 Index.
c. What industries are associated with IBM and HP?
d. Based on your answer in part c and your results for the average return and the standard deviation, what conclusions can Laura make about investing in either IBM or HP?

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Year 2006 2007 2008 2009 2010 2011 PricegM Dividend a Priceup Dividende $ 108.10 1.50 $ 84.16 1.90 22.75 $ 97.15 1.10 $ 130.90 2.15 $ 146.76 2.50 $ 183.88 2.90 24.47 40.07 39.88 48.48 58.36 0.19 0.18 0.20 1,115.10 0.26 1,257.60 0.17 0.22 1,418.30 1,25760 1,468.40 Valuesar 903.30