i) Write the Excel formula on how to estimate the return series of both Apple and Samsung in Cell E13 (for Apple) and F13 (for Samsung), respectively. [4 marks]

ii) Write down the Excel formula on how the monthly mean, monthly variance, and monthly standard deviation of the return series are estimated for both Apple and Samsung in Cells B3:C5. [6 marks]

iii) Estimate the annual mean, annual variance, and annual standard deviation for both Apple and Samsung in Cells B7:C9. Show in detail your calculations [6 marks]

a) Consider two stock prices for Apple and Samsung from 1st of June 2007 to 1st of June 2012. The spreadsheet below displays these price and return data: G H 2 6 B D E F 1 PRICES AND RETURNS FOR APPLE AND SAMSUNG 2 Apple Samsung 3 Monthly mean 2.61% -0.24% ? 4 Monthly variance 0.0125 0.0102 ? Question ii 5 Monthly standard deviation 11.17% 10.09% ? 6 7 Annual mean ? ? 8 Annual variance ? ? Question iji 9 Annual standard deviation ? ? 10 Price Data Return Series 11 Date Apple Samsung Apple Samsung 12 1/Jun/07 122.04 580.11 13 2/Jul/07 131.76 645.90 0.0766 0.1074 14 1/Aug/07 138.48 599.39 0.0497 -0.0747 67 3/Jan/12 456.48 522.70 0.1197 0.0246 68 1/Feb/12 542.44 497.91 0.1725 -0.0486 69 1/Mar/12 599.55 471.38 0.1001 -0.0548 70 2/Apr/12 583.98 458.16 -0.0263 -0.0284 71 1/May/12 577.73 449.45 -0.0108 -0.0192 72 1/Jun/12 584.00 501.50 0.0108 0.1096 73