1. Determine the return on the stock market from 2/8/21-4/19/21 based on the percentage change in the S&P 500 index level over 2/8/21-4/19/21. Annualize this return by multiplying the return by 12/m where m is the number of months in your school term. Apply the concepts discussed in Chapter 11 to explain why the market return was high or low over the school term.
2. Repeat the previous question for smaller stocks by using the Nasdaq Composite instead of the S&P 500 index. What was the annualized return on the Nasdaq Composite over the school term?
3. Explain why the return on the Nasdaq Composite was high or low over 2/8/21-4/19/21 term.