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Please solve this usign EXCEL and show the excel formulas as well!. a . Use the data given to calculate annual returns for Goodman, Landry,
Please solve this usign EXCEL and show the excel formulas as well!.
a Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then calculate
average returns over the fiveyear period. Hint: Remember, returns are calculated by subtracting the beginning
price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and
dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you
cannot calculate the rate of return for because you do not have data.
We now calculate the rates of return for the two companies and the index:
Note: To get the average, you could get the column sum and divide by but you could also use the function wizard,
fx Click fx then statistical, then Average, and then use the mouse to select the proper range. Do this for Goodman
and then copy the cell for the other items.
b Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. Hint: Use the
sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.
Use the function wizard to calculate the standard deviations.
Standard deviation of returns
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