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We learn about return and risk this week. Let s pick a stock and collect its annual stock prices and dividend payments for the past
We learn about return and risk this week. Lets pick a stock and collect its annual stock prices and dividend payments for the past years Given the stock prices and dividends, compute annual holding period returns HPRs Then, use these HPRs to compute its average return and standard deviation. In addition, with the price and dividends, compute its annual internal rate of return IRR for the past years.
Compare your results to the market. The market, with S&P Index as proxy, had the average annual return of the standard deviation of and the IRR of in the past years. The detail computation for the market is attached.
Share your results.
To find historical prices
To find historical prices and dividends for the stock you choose, you can go to finance.yahoo.com. After you put in the ticker, you click on the "Historical Data" on the left. You can then choose the monthly prices to get the prices Close Price and dividends you need.
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