The monthly closing prices for VLO and TSO for the year 2005 are given in Table A.2. (The closing prices are adjusted for stock splits and dividends.)

a. Calculatethe monthly return foreach of thesestocks.

b. Calculatethefollowing foreach of thesestocks:
i. Arithmetic mean of the monthly returns ii. Median monthly return iii. Geometric mean monthly return

c. Explain why the modeis not a meaningful statistic for this data set.

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VLO TSO Date Adj. Close* Volume Adj. Close* Volume 3-Jan-05 25.89 6,327,590 31.71 1,156,805 1-Feb-05 35.49 11,433,242 36.78 1,283,473 1-Mar-05 36.5 14,312,645 36.87 1,496,781 1-Apr-05 34.14 19,363,771 37.79 1,944,952 2-May-05 34.24 15,281,285 43.48 1,586,209 1-Jun-05 39.47 11,828,418 46.39 1,481,663 1-Jul-05 41.3 11,438,900 48.09 1,213,225 1-Aug-05 53.2 18,753,469 57.69 1,948,447 1-Sep-05 56.48 24,614,095 67.12 3,366,504 3-Oct-05 52.57 23,972,552 61.04 3,137,700 1-Nov-05 48.1 17,303,419 55.07 2,545,585 1-Dec-05 51.6 11,718,461 61.55 1,698,647 Source: http://finance.yahoo.com TABLE A.2 Monthly Closing Prices for VLO and TSO