Question
2. Calculate Stock and Market Excess Returns Choose one stock from the DJIA 30 list. Use Nike, McDonalds or Apple Go to finance.yahoo.com . Enter
2. Calculate Stock and Market Excess Returns
Choose one stock from the DJIA 30 list. Use Nike, McDonalds or Apple
Go to finance.yahoo.com. Enter the stock symbol of your choice in the search box on top of the webpage. Click on Historical Data. Select Monthly (Data frequency). Set the Start Date and the End Date. (at least 5 years of data are needed, the more the better). Download the data to your computer. Repeat the steps as you need to download additional two data series: the market return (S&P 500), and the Risk-free return (10-year T-bond Yield). One save in your worksheet, be sure to adjust the format of the data into consistent percentage number format (with 2 decimal places). And before calculating the returns, double check that your data series are sorted in ascending orders during the same date range.
The report needs to include two columns, one for the stock excess return and one for the market excess return. highlight the two columns of your final answer in red.
Hint 1: Return = [ADJ. Price(month2) ADJ. Price (month 1)]/ADJ. Price (month 1)
Hint2: Excess return = raw return risk-free return.
Please use Excel looking for an example of this report
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