Stock investors often look to beat the performance of the S&P 500 Index, which generally serves as
Question:
Stock investors often look to beat the performance of the S&P 500 Index, which generally serves as a yardstick for the market as a whole. The following table shows a comparison of the five-year cumulative total shareholder returns for IDACORP common stock, the S&P 500 Index, and the Edison Electric Institute (EEI) Electric Utilities Index. The data assumes that $100 was invested on December 31, 2002, with beginning-ofperiod weighting of the peer group indices (based on market capitalization) and monthly compounding of returns (Source: IDACORP 2007 Annual Report).
Year IDACORP ($) S&P 500 ($)
EEI Electric Utilities Index ($)
2002 100.00 100.00 100.00 2003 128.86 128.67 123.48 2004 137.11 142.65 151.68 2005 136.92 149.66 176.02 2006 186.71 173.27 212.56 2007 176.26 182.78 247.76 Using the information provided, construct appropriate statistical measures that illustrate the performance of the three investments. How well has IDACORP performed over the time periods compared to the S&P 500? How well has it performed relative to its industry as measured by the returns of the EEI Electric Utilities Index?
Step by Step Answer:
Business Statistics A Decision Making Approach
ISBN: 9780136121015
8th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry, Kent D. Smith