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Below is the question: Task 5 (14 points) What are the expected monthly returns of Amazon and Tesla stocks? What are their sample standard deviations?

Below is the question:

Task 5 (14 points) What are the expected monthly returns of Amazon and Tesla stocks? What are their sample standard deviations?

and i got the correct answers but I have no idea what to do with next question which is shown after the graph.

Amazon

Tesla

Date

Adj Close

P1-P0

(P1-P0)/P0

Date

Adj Close

P1-P0

(P1-P0)/P0

Dec-12

250.87

Dec-12

33.87

Jan-13

265.50

14.63

0.0583171

Jan-13

37.51

3.64

0.10747

Feb-13

264.27

-1.23

-0.0046328

Feb-13

34.83

-2.68

-0.07145

Mar-13

266.49

2.22

0.0084005

Mar-13

37.89

3.06

0.087855

Apr-13

253.81

-12.68

-0.0475815

Apr-13

53.99

16.10

0.424914

May-13

269.20

15.39

0.060636

May-13

97.76

43.77

0.810706

Jun-13

277.69

8.49

0.0315379

Jun-13

107.36

9.60

0.0982

Jul-13

301.22

23.53

0.0847348

Jul-13

134.28

26.92

0.250745

Aug-13

280.98

-20.24

-0.0671934

Aug-13

169.00

34.72

0.258564

Sep-13

312.64

31.66

0.1126771

Sep-13

193.37

24.37

0.144201

Oct-13

364.03

51.39

0.1643743

Oct-13

159.94

-33.43

-0.17288

Nov-13

393.62

29.59

0.0812845

Nov-13

127.28

-32.66

-0.2042

Dec-13

398.79

5.17

0.0131345

Dec-13

150.43

23.15

0.181882

Jan-14

358.69

-40.10

-0.1005542

Jan-14

181.41

30.98

0.205943

Feb-14

362.10

3.41

0.0095068

Feb-14

244.81

63.40

0.349485

Mar-14

336.37

-25.73

-0.0710577

Mar-14

208.45

-36.36

-0.14852

Apr-14

304.13

-32.24

-0.0958468

Apr-14

207.89

-0.56

-0.00269

May-14

312.55

8.42

0.0276855

May-14

207.77

-0.12

-0.00058

Jun-14

324.78

12.23

0.0391298

Jun-14

240.06

32.29

0.155412

Jul-14

312.99

-11.79

-0.0363015

Jul-14

223.30

-16.76

-0.06982

Aug-14

339.04

26.05

0.0832296

Aug-14

269.70

46.40

0.207792

Sep-14

322.44

-16.60

-0.0489618

Sep-14

242.68

-27.02

-0.10019

Oct-14

305.46

-16.98

-0.052661

Oct-14

241.70

-0.98

-0.00404

Nov-14

338.64

33.18

0.1086231

Nov-14

244.52

2.82

0.011667

Dec-14

310.35

-28.29

-0.0835401

Dec-14

222.41

-22.11

-0.09042

Jan-15

354.53

44.18

0.1423554

Jan-15

203.60

-18.81

-0.08457

Feb-15

380.16

25.63

0.0722929

Feb-15

203.34

-0.26

-0.00128

Mar-15

372.10

-8.06

-0.0212016

Mar-15

188.77

-14.57

-0.07165

Apr-15

421.78

49.68

0.1335125

Apr-15

226.05

37.28

0.197489

May-15

429.23

7.45

0.0176633

May-15

250.80

24.75

0.109489

Jun-15

434.09

4.86

0.0113226

Jun-15

268.26

17.46

0.069617

Jul-15

536.15

102.06

0.2351126

Jul-15

266.15

-2.11

-0.00787

Aug-15

512.89

-23.26

-0.0433834

Aug-15

249.06

-17.09

-0.06421

Sep-15

511.89

-1.00

-0.0019497

Sep-15

248.40

-0.66

-0.00265

Oct-15

625.90

114.01

0.2227236

Oct-15

206.93

-41.47

-0.16695

Nov-15

664.80

38.90

0.0621504

Nov-15

230.26

23.33

0.112743

Dec-15

675.89

11.09

0.0166817

Dec-15

240.01

9.75

0.042343

Jan-16

587.00

-88.89

-0.1315155

Jan-16

191.20

-48.81

-0.20337

Feb-16

552.52

-34.48

-0.0587393

Feb-16

191.93

0.73

0.003818

Mar-16

593.64

41.12

0.0744226

Mar-16

229.77

37.84

0.197155

Apr-16

659.59

65.95

0.1110943

Apr-16

240.76

10.99

0.04783

May-16

722.79

63.20

0.095817

May-16

223.23

-17.53

-0.07281

Jun-16

715.62

-7.17

-0.0099199

Jun-16

212.28

-10.95

-0.04905

Jul-16

758.81

43.19

0.0603533

Jul-16

234.79

22.51

0.106039

Aug-16

769.16

10.35

0.0136397

Aug-16

212.01

-22.78

-0.09702

Sep-16

837.31

68.15

0.0886032

Sep-16

204.03

-7.98

-0.03764

Oct-16

789.82

-47.49

-0.0567173

Oct-16

197.73

-6.30

-0.03088

Nov-16

750.57

-39.25

-0.0496949

Nov-16

189.40

-8.33

-0.04213

Dec-16

768.66

18.09

0.0241016

Dec-16

213.69

24.29

0.128247

Jan-17

823.48

54.82

0.0713189

Jan-17

251.93

38.24

0.178951

Feb-17

845.04

21.56

0.0261816

Feb-17

249.99

-1.94

-0.0077

Mar-17

886.54

41.50

0.0491101

Mar-17

278.30

28.31

0.113244

Apr-17

924.99

38.45

0.0433709

Apr-17

314.07

35.77

0.12853

May-17

994.62

69.63

0.0752765

May-17

341.01

26.94

0.085777

Jun-17

968.00

-26.62

-0.026764

Jun-17

361.61

20.60

0.060409

Jul-17

987.78

19.78

0.0204339

Jul-17

323.47

-38.14

-0.10547

Aug-17

980.60

-7.18

-0.0072689

Aug-17

355.90

32.43

0.100257

Sep-17

961.35

-19.25

-0.0196308

Sep-17

341.10

-14.80

-0.04158

Oct-17

1105.28

143.93

0.1497166

Oct-17

331.53

-9.57

-0.02806

Nov-17

1176.75

71.47

0.0646623

Nov-17

308.85

-22.68

-0.06841

Dec-17

1169.47

-7.28

-0.0061866

Dec-17

311.35

2.50

0.008095

Total

1.7238863

Total

2.93679

Average Monthly Return

2.87%

Average Monthly Return

4.89%

Standard Deviation

0.0762383

Standard Deviation

0.165063

Task 6 (8 points) Suppose you purchased Amazon and Tesla stocks at the end of 2012 and held them for 5 years. What are your monthly average investment returns from these stocks? Compare these against the expected monthly returns computed in Task 5.

I don't know i did it correctly but here are what I got:

Amazon Tesla
Date Adj Close P1-P0 (P1-P0)/P0 Compound Compound (P1-P0)/P0 Date Adj Close P1-P0 (P1-P0)/P0 Compound Compound (P1-P0)/P0
Dec-12 250.87 Dec-12 33.87
Jan-13 265.50 14.63 0.0583171 0.0583171 Jan-13 37.51 3.64 0.10747 0.1074697
Feb-13 264.27 -1.23 -0.004633 0.0580469 -0.00463281 Feb-13 34.83 -2.68 -0.07145 0.0997913 -0.071447511
Mar-13 266.49 2.22 0.0084005 0.0585345 0.008400504 Mar-13 37.89 3.06 0.087855 0.1085584 0.087855206
Apr-13 253.81 -12.68 -0.047581 0.0557494 -0.047581495 Apr-13 53.99 16.10 0.424914 0.1546865 0.424914316
May-13 269.20 15.39 0.060636 0.0591298 0.060635964 May-13 97.76 43.77 0.810706 0.2800917 0.810705656
Jun-13 277.69 8.49 0.0315379 0.0609946 0.031537851 Jun-13 107.36 9.60 0.0982 0.3075966 0.09819966
Jul-13 301.22 23.53 0.0847348 0.066163 0.084734772 Jul-13 134.28 26.92 0.250745 0.384725 0.250745136
Aug-13 280.98 -20.24 -0.067193 0.0617173 -0.06719338 Aug-13 169.00 34.72 0.258564 0.4842011 0.258564204
Sep-13 312.64 31.66 0.1126771 0.0686714 0.112677069 Sep-13 193.37 24.37 0.144201 0.5540234 0.144201154
Oct-13 364.03 51.39 0.1643743 0.0799592 0.164374301 Oct-13 159.94 -33.43 -0.17288 0.4582433 -0.172880974
Nov-13 393.62 29.59 0.0812845 0.0864586 0.081284499 Nov-13 127.28 -32.66 -0.2042 0.3646693 -0.204201592
Dec-13 398.79 5.17 0.0131345 0.0875942 0.013134531 Dec-13 150.43 23.15 0.181882 0.4309962 0.181882418
Jan-14 358.69 -40.10 -0.100554 0.0787863 -0.100554192 Jan-14 181.41 30.98 0.205943 0.5197569 0.205943046
Feb-14 362.10 3.41 0.0095068 0.0795353 0.009506828 Feb-14 244.81 63.40 0.349485 0.7014039 0.349484552
Mar-14 336.37 -25.73 -0.071058 0.0738837 -0.071057748 Mar-14 208.45 -36.36 -0.14852 0.5972291 -0.14852335
Apr-14 304.13 -32.24 -0.095847 0.0668022 -0.095846807 Apr-14 207.89 -0.56 -0.00269 0.5956246 -0.002686486
May-14 312.55 8.42 0.0276855 0.0686516 0.027685473 May-14 207.77 -0.12 -0.00058 0.5952808 -0.000577204
Jun-14 324.78 12.23 0.0391298 0.0713379 0.039129776 Jun-14 240.06 32.29 0.155412 0.6877947 0.155412203
Jul-14 312.99 -11.79 -0.036302 0.0687483 -0.036301524 Jul-14 223.30 -16.76 -0.06982 0.6397757 -0.069815859
Aug-14 339.04 26.05 0.0832296 0.0744701 0.08322956 Aug-14 269.70 46.40 0.207792 0.7727162 0.207792245
Sep-14 322.44 -16.60 -0.048962 0.0708239 -0.048961794 Sep-14 242.68 -27.02 -0.10019 0.6953013 -0.100185457
Oct-14 305.46 -16.98 -0.052661 0.0670943 -0.052660994 Oct-14 241.70 -0.98 -0.00404 0.6924935 -0.004038223
Nov-14 338.64 33.18 0.1086231 0.0743823 0.108623142 Nov-14 244.52 2.82 0.011667 0.7005731 0.011667385
Dec-14 310.35 -28.29 -0.08354 0.0681684 -0.083540065 Dec-14 222.41 -22.11 -0.09042 0.6372258 -0.09042205
Jan-15 354.53 44.18 0.1423554 0.0778725 0.14235538 Jan-15 203.60 -18.81 -0.08457 0.5833334 -0.084573525
Feb-15 380.16 25.63 0.0722929 0.0835021 0.072292909 Feb-15 203.34 -0.26 -0.00128 0.5825884 -0.001277063
Mar-15 372.10 -8.06 -0.021202 0.0817318 -0.021201594 Mar-15 188.77 -14.57 -0.07165 0.540844 -0.07165335
Apr-15 421.78 49.68 0.1335125 0.092644 0.133512476 Apr-15 226.05 37.28 0.197489 0.6476548 0.197488998
May-15 429.23 7.45 0.0176633 0.0942804 0.017663265 May-15 250.80 24.75 0.109489 0.7185659 0.10948905
Jun-15 434.09 4.86 0.0113226 0.0953479 0.011322566 Jun-15 268.26 17.46 0.069617 0.7685904 0.069617252
Jul-15 536.15 102.06 0.2351126 0.1177654 0.235112601 Jul-15 266.15 -2.11 -0.00787 0.762545 -0.007865563
Aug-15 512.89 -23.26 -0.043383 0.1126563 -0.043383396 Aug-15 249.06 -17.09 -0.06421 0.7135806 -0.064211897
Sep-15 511.89 -1.00 -0.00195 0.1124366 -0.001949736 Sep-15 248.40 -0.66 -0.00265 0.7116896 -0.00264998
Oct-15 625.90 114.01 0.2227236 0.1374789 0.222723643 Oct-15 206.93 -41.47 -0.16695 0.5928741 -0.166948478
Nov-15 664.80 38.90 0.0621504 0.1460233 0.062150443 Nov-15 230.26 23.33 0.112743 0.6597168 0.112743453
Dec-15 675.89 11.09 0.0166817 0.1484592 0.01668175 Dec-15 240.01 9.75 0.042343 0.6876515 0.042343439
Jan-16 587.00 -88.89 -0.131516 0.1289346 -0.131515503 Jan-16 191.20 -48.81 -0.20337 0.5478062 -0.203366522
Feb-16 552.52 -34.48 -0.058739 0.121361 -0.058739319 Feb-16 191.93 0.73 0.003818 0.5498977 0.003817971
Mar-16 593.64 41.12 0.0744226 0.130393 0.074422634 Mar-16 229.77 37.84 0.197155 0.6583129 0.197155277
Apr-16 659.59 65.95 0.1110943 0.144879 0.111094283 Apr-16 240.76 10.99 0.04783 0.6898003 0.047830399
May-16 722.79 63.20 0.095817 0.1587608 0.09581702 May-16 223.23 -17.53 -0.07281 0.6395752 -0.072811096
Jun-16 715.62 -7.17 -0.00992 0.1571859 -0.009919871 Jun-16 212.28 -10.95 -0.04905 0.6082024 -0.049052534
Jul-16 758.81 43.19 0.0603533 0.1666726 0.060353265 Jul-16 234.79 22.51 0.106039 0.6726957 0.106039166
Aug-16 769.16 10.35 0.0136397 0.168946 0.013639745 Aug-16 212.01 -22.78 -0.09702 0.6074288 -0.097022866
Sep-16 837.31 68.15 0.0886032 0.1839151 0.088603187 Sep-16 204.03 -7.98 -0.03764 0.5845653 -0.037639716
Oct-16 789.82 -47.49 -0.056717 0.173484 -0.056717334 Oct-16 197.73 -6.30 -0.03088 0.5665152 -0.030877827
Nov-16 750.57 -39.25 -0.049695 0.1648627 -0.049694867 Nov-16 189.40 -8.33 -0.04213 0.542649 -0.042128166
Dec-16 768.66 18.09 0.0241016 0.1688362 0.024101637 Dec-16 213.69 24.29 0.128247 0.6122422 0.128247142
Jan-17 823.48 54.82 0.0713189 0.1808774 0.07131893 Jan-17 251.93 38.24 0.178951 0.7218034 0.178950773
Feb-17 845.04 21.56 0.0261816 0.185613 0.026181569 Feb-17 249.99 -1.94 -0.0077 0.7162451 -0.007700504
Mar-17 886.54 41.50 0.0491101 0.1947285 0.049110103 Mar-17 278.30 28.31 0.113244 0.7973559 0.11324446
Apr-17 924.99 38.45 0.0433709 0.2031741 0.043370872 Apr-17 314.07 35.77 0.12853 0.8998404 0.128530437
May-17 994.62 69.63 0.0752765 0.2184683 0.075276496 May-17 341.01 26.94 0.085777 0.9770261 0.085777064
Jun-17 968.00 -26.62 -0.026764 0.2126212 -0.026763985 Jun-17 361.61 20.60 0.060409 1.036047 0.060408711
Jul-17 987.78 19.78 0.0204339 0.2169659 0.020433914 Jul-17 323.47 -38.14 -0.10547 0.9267723 -0.105472707
Aug-17 980.60 -7.18 -0.007269 0.2153888 -0.007268878 Aug-17 355.90 32.43 0.100257 1.0196873 0.100256571
Sep-17 961.35 -19.25 -0.019631 0.2111605 -0.019630839 Sep-17 341.10 -14.80 -0.04158 0.977284 -0.041584682
Oct-17 1105.28 143.93 0.1497166 0.2427748 0.149716603 Oct-17 331.53 -9.57 -0.02806 0.949865 -0.028056309
Nov-17 1176.75 71.47 0.0646623 0.2584731 0.06466232 Nov-17 308.85 -22.68 -0.06841 0.8848846 -0.068410078
Dec-17 1169.47 -7.28 -0.006187 0.2568741 -0.006186555 Dec-17 311.35 2.50 0.008095 0.8920474 0.008094544
Average compounded monthly return 2.82% Average compounded monthly return 4.80%

Task 6 asks me to compare... but shouldn't compound monthly return be greater than the task5? Could you help me with this?

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