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please solve the questing in defiles and show all steps. thank you. Problem 6-7: Expected Return, Standard Deviation Below are the prices for ABC Corporation
please solve the questing in defiles and show all steps. thank you.
Problem 6-7: Expected Return, Standard Deviation | |||||
Below are the prices for ABC Corporation and the S&P 500 Index. | |||||
a. Calculate the monthyly holding-eriod returns for ABC and the S&P 500 Index. | |||||
b. What are the average monthly returns and stardard deviations for each? | |||||
DATA | |||||
a. | |||||
Month | ABC Corporation | S&P 500 Index | |||
Prices | Returns | Prices | |||
May-21 | 48.55 | 2,025 | |||
Jun-21 | 48.11 | -0.91% | |||
Jul-21 | 48.95 | 1.75% | 2,026 | ||
Aug-21 | 50.55 | 3.27% | 2,013 | ||
Sep-21 | 50.82 | 0.53% | 2,014 | ||
Oct-21 | 52.55 | 3.40% | 2,018 | ||
Nov-21 | 53.75 | 2.28% | 2,023 | ||
Dec-21 | 54.05 | 0.56% | 2,025 | ||
Jan-22 | 47.95 | -11.29% | 1,995 | ||
Feb-22 | 51.33 | 7.05% | 2,095 | ||
Mar-22 | 51.58 | 0.49% | 2,096 | ||
Apr-22 | 52.42 | 1.63% | 2,088 | ||
May-22 | 53.77 | 2.58% | 2,105 |
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