The data below presents monthly closing prices of Standard & Poors 500 Index, Wal-Mart, and Target to calculate the holding-period returns for the 24 months from May 2013 through May 2015

1. Use the price data from the table (use the excel available in week 7) for the Standard & Poors 500 Index, Wal-Mart, and Target to calculate the holding-period returns for the 24 months from May 2013 through May 2015. Calculate the average monthly holding-period returns and the standard deviation of these returns for the S&P Index, Wal-Mart, and Target. Please compare the results obtained for these three series. (15 points)

2. Plot (1) the holding-period returns for Wal-Mart against the Standard & Poors 500 Index, and (2) the Target holding-period returns against the Standard & Poors 500 Index. From your graphs, describe the nature of the relationship between stock returns for Wal-Mart and the returns for the S&P 500 Index. Make the same comparison for Target. (5 points)

3. The data below presents monthly closing prices of Standard & Poors 500 Index, Wal-Mart, and Target to calculate the holding-period returns for the 24 months from May 2013 through May 2015

Month S&P500 Walmart Target 2013 1.631 1.606 1.684 1.633 1.682 1.757 2014 1.806 1.848 1.783 1.859 1.872 1.884 May June July August September October November December January February March April May June July August September October November December January February March April May 1.924 74,84 74,49 77,94 72,98 73,96 76,75 81,01 78,69 74,68 74,70 76,43 79,71 76,77 75,07 73,58 75,50 76,47 76,27 87,54 85,88 84,98 83,93 82,25 78,05 75,86 69,50 68,86 71,25 63,31 63,98 64,79 63,93 63,27 56,64 62,54 60,51 61,75 56,76 57,95 59,59 60,07 62,68 61,82 74,00 75,91 73,61 76,83 82,07 78,83 79,29 1.960 1.931 2.003 1.972 2.018 2.068 2.059 1.995 2.105 2.068 2.086 2.182 2015 Month S&P500 Walmart Target 2013 1.631 1.606 1.684 1.633 1.682 1.757 2014 1.806 1.848 1.783 1.859 1.872 1.884 May June July August September October November December January February March April May June July August September October November December January February March April May 1.924 74,84 74,49 77,94 72,98 73,96 76,75 81,01 78,69 74,68 74,70 76,43 79,71 76,77 75,07 73,58 75,50 76,47 76,27 87,54 85,88 84,98 83,93 82,25 78,05 75,86 69,50 68,86 71,25 63,31 63,98 64,79 63,93 63,27 56,64 62,54 60,51 61,75 56,76 57,95 59,59 60,07 62,68 61,82 74,00 75,91 73,61 76,83 82,07 78,83 79,29 1.960 1.931 2.003 1.972 2.018 2.068 2.059 1.995 2.105 2.068 2.086 2.182 2015