Question
Below are monthly returns for the 4-week T-bill, the S&P 500 index, Duke Energy (DUK), Netflix (NFLX), Amazon.com (AMZN), and The Coca-Cola Company (KO). Use
Below are monthly returns for the 4-week T-bill, the S&P 500 index, Duke Energy (DUK), Netflix (NFLX), Amazon.com (AMZN), and The Coca-Cola Company (KO). Use the monthly returns and Excel functions, formulas, and cell references to calculate the 1) monthly average return, 2) monthly standard deviation of returns, 3) the annualized average return using the EAR formula, and 4) the annualized risk premium. Format cells appropriately.
I need to know what formulas to use in order to get the Annualized risk premium.
The answer you get will not be the one shown because there is more data in the table missing. The table was to big for me to paste it all. As long as I have the formulas for J4-7 I will be ok.
Instructions: Below are montnly returns tor the 4-week I-Dill, tnes&P500 Index, Duke Energy (DUK), Netrlx (NHLX), Amazon.com (AMLN), and Ine Coca-Cola Company (KO). Use the monthly returns and Excel functions, formulas, and cell references to calculate the 1) monthly average return, 2) monthly standard deviation 1 of returns, 3) the annualized average return using the EAR formula, and 4) the annualized risk premium. Format cells appropriately. 3 Date T-b SP500 DUK NFLX AMZN KO 4|201309 0.00% 2.97% 2.93% 8.91% 11.27% -0.79% 51201310 0.00% 4.46% 7.41% 4.29% 16.44% 5.22% 61201311 0.00% 2.80% -2.47% 13.43% 8.13% 1.57% 71201312 0.00% 2.36% -0.27% 0.65% 1.31% 3.51% 81201401 0.00% -3.56% 2.33% 11.18% -10.06% -8.45% 91201402 0.00% 4.31% 0.37% 8.87% 0.95% 1.00% 101201403 0.00% 0.69% 1.59% -21.00% -7.11% 1.20% 11 | 201404 0.00% 0.62% 4.59% -8.52% -9.58% 6.35% 12201405 0.00% 2.10% -4.58% 29.74% 2.77% 0.29% 13201406 0.00% 1.91% 5.52% 5.45% 3.91%3.54% 14|201407 0.00% -1.51% -2.78% -4.06% -3.63% -6.55% 15201408 0.00% 3.77% 2.58% 12.99% 8.32% 6.18% 16, 201409 0.00% -1.55% 2.19% -5.54% -4.90% 2.25% 171201410 0.00% 2.32% 9.87% -12.95% -5.27% -1.11% 181201411 0.00% 2.45% -1.52% -11.76% 10.86% 7.04% 191201412 0.00% -0.42% 4.27% -1.44% -8.35% -5.17% 201201501 0.00% -3.10% 4.31% 29.33% 14.24% -2.49% T-b SP500 DUKNFLX AMZN KO Monthly average return Monthly std. dev Annualized average return Annualized risk premium Check figures Annualized risk premium 0.00% 12.26% 10.11% 68.77% 53.14% 6.99% , , Be sure to use appropriate Excel formulas and functions to calculate items. Use appropriate number formats. Typed in numbers receive 0 creditStep by Step Solution
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