The Excel template provided contains monthly returns for three securities over five years. The securities are,

• Vanguard Total Bond Market Index Fund ETF Shares (BND)tracks a very broad bond index.
• Vanguard Target Retirement 2035 Fund Investor Shares (VTTH) is very diversified and includes U.S. stocks, bonds, and some foreign-traded securities.
• Vanguard Total Stock Market Index Fund ETF Shares (VTI) tracks a very broad U.S. stock index.

***Please, respond to the following questions and provide all your calculation in the same Excel file.***

2. For each month, calculate the Holding Period Returns for the three assets (monthly holding period returns). The prices in the files are adjusted because they already include the dividend or income component of the return.
4. Over the period under analysis, what is the arithmetic average monthly return for each security?
6. Over the period under analysis, what is the geometric average monthly return for each security? Suppose you invested $100 in each of the securities at the beginning of the period. How much money would you have had at the end of the period?
8. Over the period under analysis, what is the variance of the monthly returns for each security? What about the standard deviation? Calculate the sample (unbiased) standard deviation.
10. Calculate the Sharpe ratio for each of the securities. If you had invested 100 percent of your wealth in one of the three securities, which security offered a better risk/return tradeoff over the period analyzed? Assume that the risk-free monthly rate is 0.1% every month. This is an assumption, given that we do not have the actual monthly values for every month. In the end, you can subtract 0.1% from the average return for each risky security and divide it by its standard deviation. Assuming the returns provided are normally distributed, what is the probability that each of the securities' returns in any month will be negative?
12. For each of the securities, calculate the skewness of the monthly returns. Hint: there is an Excel function to get this value. For the security VTI, is the distribution skewed to the left? To the right? Symmetrical?
14. For each of the securities, calculate the kurtosis of the monthly returns. Hint: there is an Excel function to get this value. For the security VTI, are we in the presence of fat tails?
15.  
16. Calculate the Value at Risk (1%, normal) = Mean - 2.33 SD for each security.
17.  

Info from Yahoo Finance
Vanguard Total Bond Market Index Fund ETF Shares (BND)	BND 87.14 -0.03 -0.03% : Vanguard Total Bond Market Index Fund ETF Shares - Yahoo Finance
Vanguard Target Retirement 2035 Fund Investor Shares (VTTHX)	VTTHX 26.21 0.01 0.04% : Vanguard Target Retirement 2035 Fund Investor Shares - Yahoo Finance
Vanguard Total Stock Market Index Fund ETF Shares (VTI)	VTI 205.04 -0.89 -0.43% : Vanguard Total Stock Market Index Fund ETF Shares - Yahoo Finance

Date	VTI Adj Close	VTTHX Adj Close	BND Adj Close
4/1/16	96.48542	15.520437	72.587387
5/1/16	98.158867	15.610671	72.59034
6/1/16	97.994286	15.637741	74.05172
7/1/16	102.340126	16.179152	74.502419
8/1/16	102.551399	16.242317	74.268417
9/1/16	102.257462	16.323528	74.351631
10/1/16	100.503494	16.025753	73.657364
11/1/16	105.016869	16.188177	71.758232
12/1/16	106.438263	16.007706	71.810226
1/1/17	109.090714	16.675169	72.270241
2/1/17	113.12149	17.070881	72.564888
3/1/17	112.675682	17.227325	72.545784
4/1/17	114.387474	17.466593	73.108459
5/1/17	115.544319	17.733471	73.634048
6/1/17	116.10408	17.843903	73.669014
7/1/17	118.831985	18.202805	73.968277
8/1/17	119.010071	18.285629	74.756119
9/1/17	121.390648	18.589315	74.559807
10/1/17	124.55896	18.902206	74.544159
11/1/17	128.333511	19.215094	74.459755
12/1/17	129.190048	19.040245	74.672569
1/1/18	136.61499	20.19594	74.0924
2/1/18	131.478836	19.492085	73.163475
3/1/18	128.376297	19.30439	73.674843
4/1/18	129.477005	19.370083	73.015175
5/1/18	133.000519	19.520237	73.531685
6/1/18	133.370895	19.46393	73.493462
7/1/18	138.380783	19.923782	73.640755
8/1/18	143.130524	20.120863	74.12719
9/1/18	142.729919	20.139629	73.722328
10/1/18	132.783539	18.900846	73.089943
11/1/18	135.457214	19.18239	73.542656
12/1/18	122.309196	17.662062	74.73597
1/1/19	133.534424	19.273506	75.942749
2/1/19	138.286667	19.687057	75.686707
3/1/19	139.491577	19.946732	77.167068
4/1/19	145.750534	20.485312	77.13575
5/1/19	136.349777	19.610117	78.548805
6/1/19	145.459763	20.629576	79.533134
7/1/19	148.062988	20.677662	79.653015
8/1/19	144.979324	20.475695	81.859535
9/1/19	146.885941	20.773836	81.40432
10/1/19	150.666504	21.187391	81.661865
11/1/19	156.373444	21.620178	81.625237
12/1/19	159.891373	21.658649	81.386978
1/1/20	160.66011	22.053774	83.361366
2/1/20	147.808868	20.872849	84.570061
3/1/20	126.655418	18.501158	83.374054
4/1/20	144.001099	20.124931	85.654854
5/1/20	151.771866	20.922054	86.248169
6/1/20	154.55629	21.44363	86.832832
7/1/20	164.17688	22.329325	88.103081
8/1/20	175.841446	23.283905	87.27829
9/1/20	168.928009	22.791853	87.196472
10/1/20	166.314377	22.408052	86.71389
11/1/20	185.944611	24.514034	87.764099
12/1/20	193.852493	24.819107	87.61763
1/1/21	193.990005	25.129999	87.291
2/1/21	205.929993	26.209999	87.021431