Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please provide which formula you used and how did you calculate it. TransAlta Data 2. On the following page, you will find stock price data
Please provide which formula you used and how did you calculate it.
TransAlta Data 2. On the following page, you will find stock price data for TransAlta, the major electric power producer in Alberta, from January 2 to December 1, 2009. a) Calculate the monthly holding period returns (HPRs), assuming you start investing on January 1, 2009. Use the adjusted closing price for your data values. b) Calculate the annual HPR. Calculate the arithmetic & geometric means of the monthly HPRs over the past year. d) Explain what each type of mean tells you and when you should use it e) Calculate the variance and standard deviation of the monthly HP Rs. Assume this is a sample. f) Draw a normal distribution and show 1, 2 & 3 standard deviations from the mean. Assume you invested $10,000 in TransAlta stock on Jan 2, 2009. What is your investment worth on Dec 1, 2009. Show that you can obtain the same answer using either the monthly HP Rs or the annual HPR. TransAlta Stock Prices, Jan 2-Dec 1, 2009 Date Low Open 22.15 High 23.65 21.51 20.28 22.23 20.04 21.95 22.05 20.1 21.4 22.22 20.61 21.58 22.91 20.86 22.31 22.4 20.56 01/12/2009 02/11/2009 01/10/2009 01/09/2009 04/08/2009 02/07/2009 01/06/2009 01/05/2009 01/04/2009 02/03/2009 02/02/2009 02/01/2009 Close Volume Adi Close 23.48 759,100 $23.19 22.08 958,000 $21.8 20.19 652,500 $19.68 21.84 677,000 $21.29 21.32 897,100 $20.78 21.46 647,800 $20.64 22.31 1130,200 $21.45 20 945,200 $19.23 20.54 936,000 $19.47 18.45 1084,100 $17.49 21.07 839,700 $19.97 22.36 546,100 $20.89 20.25 23.93 19.8 20.6 21.57 19.81 18.38 21.29 18.14 21.05 21.05 17.96 22.48 22.96 18.5 24.02 26.6 21.13Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started