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.

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.

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

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 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 iii 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