(LO 6-2, LO 6-3, LO 6-4) Download the “Stock Returns DJIA Nasdaq SP500” dataset in Excel from Connect (Source: https://www.1stock1.com/1stock1_142.htm). Note the annual stock market returns to investment in the various indices from 1975 to 2021.
Either use the descriptive statistics tool featured in Excel’s Analysis Toolpak or Excel functions to compute the summary statistics to address the following questions.
Required:
1. What is the average annual return on the NASDAQ market? Median return?
2. What is the maximum annual return on the DJIA? On Nasdaq?
3. How many annual returns were for 20 percent or higher for the Dow Jones? (Hint:
Use COUNTIF Excel function)?
4. How many annual returns were negative for the S&P 500? (Hint: Use COUNTIF Excel function)?