(Expected return, standard deviation, and capital asset pricing model)

The following are the end-of-month prices for both the Standard & Poor's 500 Index and Nike's common stock.a. Using the data in the popup window, calculate the holding-period returns for each of the months.

a. Using the data in the table, calculate the holding-period returns for each of the months for both the Standard & Poor's 500 Index and Nike's common stock and fill in the blanks below.(Round to two decimal places.)

b. Calculate the average monthly return and the standard deviation for both the S&P 500 and Nike.

c. Develop a graph that shows the relationship between the Nike stock returns and the S&P 500 Index. (Show the Nike returns on the vertical axis and the S&P 500 Index returns on the horizontal axis.)

d. From your graph, describe the nature of the relationship between Nike stock returns and the returns for the S&P 500 Index.

	NIKE		NIKE RETURN		S&P 500 INDEX		S&P 500 RETURN
2017
January	$52.90				$2,279
February	57.16		nothing	%	2,364		nothing	%

NIKE S&P 500 INDEX 2017 January 52.90 2,279 February 57.16 2,364 March 55.73 2,363 April 55.41 2,384 May 52.99 2,412 June 59.00 2,423 July 59.05 2,470 August 52.81 2,472 September 51.85 2,519 October 54.99 2,575 November 60.42 2,648 December 62.55 2,674 2018 January 68.22 2,824