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 here, calculate the holding-period returns for each of the months.

  

                                                                                                    

  

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 as done in Figure 6-5.) d. From your graph, describe the nature of the relationship between Nike stock returns and the returns for the S&P 500 Index.         

  

                                                                                          

 
 

NIKE SAP 500 INDEX 2014 May $76.91 $1,924 June 77.55 1,960 July August 77.13 1,931 2,003 78.55 September 89.20 1,972 2,018 October 92.97 November 99.29 2,068 2,059 December 96.15 2015 January 92.25 1,995 February 97.12 2,105 2,068 March 100.33 April May 98.84 2,086 2,128 104.43