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se the price data from the table that follows for the Standard & Poors 500 Index, Wal-mart, and Target to calculate the holding-period returns for
se the price data from the table that follows for the Standard & Poor’s 500 Index, Wal-mart, and Target to calculate the holding-period returns for the 24 months from July 2010 through June 2012.
Month | S&P 500 | Wal-mart | Target |
---|---|---|---|
June-10 | $1,030.71 | $48.07 | $49.17 |
Jul-10 | 1,101.60 | 51.19 | 51.32 |
Aug-10 | 1,049.33 | 50.14 | 51.16 |
Sep-10 | 1,141.20 | 53.52 | 53.44 |
Oct-10 | 1,183.26 | 54.17 | 51.94 |
Nov-10 | 1,180.55 | 54.09 | 56.94 |
Dec-10 | 1,257.64 | 53.93 | 60.13 |
Jan-11 | 1,286.12 | 56.07 | 54.83 |
Feb-11 | 1,327.22 | 51.98 | 52.55 |
Mar-11 | 1,325.83 | 52.05 | 50.01 |
Apr-11 | 1,363.61 | 54.98 | 49.10 |
May-11 | 1,345.20 | 55.22 | 49.53 |
Jun-11 | 1,320.64 | 53.14 | 46.91 |
Jul-11 | 1,292.28 | 52.71 | 51.49 |
Aug-11 | 1,218.89 | 53.19 | 51.67 |
Sep-11 | 1,131.42 | 51.90 | 49.04 |
Oct-11 | 1,253.30 | 56.72 | 54.75 |
Nov-11 | 1,246.96 | 58.90 | 52.70 |
Dec-11 | 1,257.60 | 59.76 | 51.22 |
Jan-12 | 1,312.41 | 61.36 | 50.81 |
Feb-12 | 1,365.68 | 59.08 | 56.69 |
Mar-12 | 1,408.47 | 61.20 | 58.27 |
Apr-12 | 1,397.91 | 58.91 | 57.94 |
May-12 | 1,310.33 | 65.82 | 57.91 |
Jun-12 | 1,355.69 | 67.70 | 57.40 |
Assume that you have decided to invest one-half of your money in Wal-mart and the remainder in Target. Calculate the monthly holding-period returns for your two-stock portfolio. (Hint: The monthly return for the portfolio is the average of the two stocks’ monthly returns.)
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