Question

In: Finance

What is the average monthly return and standard deviation of returns for (i) S&P 500: Date...

What is the average monthly return and standard deviation of returns for

(i) S&P 500:

Date Adj Close
8/1/2015 1972.18
9/1/2015 1920.03
######## 2079.36
######## 2080.41
######## 2043.94
1/1/2016 1940.24
2/1/2016 1932.23
3/1/2016 2059.74
4/1/2016 2065.3
5/1/2016 2096.95
6/1/2016 2098.86
7/1/2016 2173.6
8/1/2016 2170.95
9/1/2016 2168.27
######## 2126.15
######## 2198.81
######## 2238.83
1/1/2017 2278.87
2/1/2017 2363.64
3/1/2017 2362.72
4/1/2017 2384.2
5/1/2017 2411.8
6/1/2017 2423.41
7/1/2017 2470.3
8/1/2017 2471.65
9/1/2017 2519.36
######## 2575.26
######## 2584.84
######## 2673.61
1/1/2018 2823.81
2/1/2018 2713.83
3/1/2018 2640.87
4/1/2018 2648.05
5/1/2018 2705.27
6/1/2018 2718.37
7/1/2018 2816.29
8/1/2018 2901.52
9/1/2018 2913.98
######## 2711.74
######## 2760.17
######## 2506.85
1/1/2019 2704.1
2/1/2019 2784.49
3/1/2019 2834.4
4/1/2019 2945.83
5/1/2019 2752.06
6/1/2019 2941.76
7/1/2019 2980.38
8/1/2019 2926.46

(ii) GE:

Date Adj Close
8/1/2015 22.04931
9/1/2015 21.37927
######## 24.7352
######## 25.60761
######## 26.64251
1/1/2016 25.07532
2/1/2016 25.10978
3/1/2016 27.61257
4/1/2016 26.70923
5/1/2016 26.25756
6/1/2016 27.3433
7/1/2016 27.25289
8/1/2016 27.34041
9/1/2016 25.92262
######## 25.66629
######## 27.13042
######## 27.8713
1/1/2017 26.39264
2/1/2017 26.49039
3/1/2017 26.69272
4/1/2017 25.96718
5/1/2017 24.52506
6/1/2017 24.19364
7/1/2017 23.33439
8/1/2017 22.36858
9/1/2017 22.03145
######## 18.55219
######## 16.83133
######## 16.05832
1/1/2018 15.08917
2/1/2018 13.16687
3/1/2018 12.68307
4/1/2018 13.23819
5/1/2018 13.2476
6/1/2018 12.80539
7/1/2018 12.93803
8/1/2018 12.28306
9/1/2018 10.71682
######## 9.678614
######## 7.187089
######## 7.254169
1/1/2019 9.74951
2/1/2019 10.36903
3/1/2019 9.969832
4/1/2019 10.16022
5/1/2019 9.430923
6/1/2019 10.4899
7/1/2019 10.45
8/1/2019 8.25

Solutions

Expert Solution

Return for a particular month = Price of current month / Price of the previous month - 1.

This is in column D for both S&P 500 and GE

(i) S&P 500

Use the excel function Average with inputs as cells D4:D51

Cell D52 =AVERAGE(D4:D51)

0.89%

Use the function in Cell D53 =STDEV(D4:D51) to calculate the standard deviation of returns

3.54%

(ii) GE

D105 =AVERAGE(D57:D104)

-1.62%

D106 =STDEV(D57:D104)

9.11%

Can you please upvote? Thank You :-)

(i) S&P 500

Screenshot with formulas

(ii) GE

Screenshot with formulas

jeff jeffy answered 2 months ago
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