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Risk and Return 1. Calculate monthly returns for Darden Restaurants and the S&P 500. Be sure...

Risk and Return
1. Calculate monthly returns for Darden Restaurants and the S&P 500. Be sure to include the dividends for Darden in the return. Please show equations in Excel.
Darden (DRI) S&P 500
Month Price Dividend Price
6/1/16 59.11 2098.86 DRI Return SP Return DRI- Ave S&P - Ave (DRI-Ave)x(S&P-Ave)
7/1/16 57.446472 0.56 2173.600098
8/1/16 58.043533 2170.949951
9/1/16 57.742203 2168.27002
10/1/16 61.009743 0.56 2126.149902
11/1/16 69.65522 2198.810059
12/1/16 69.10405 2238.830078
1/1/17 69.636215 0.56 2278.870117
2/1/17 71.520325 2363.639893
3/1/17 80.129959 2362.719971
4/1/17 81.585648 0.56 2384.199951
5/1/17 85.746788 2411.800049
6/1/17 87.202744 2423.409912
7/1/17 80.877548 0.63 2470.300049
8/1/17 79.708763 2471.649902
9/1/17 76.494789 2519.360107
10/1/17 79.883553 1.26 2575.26001
11/1/17 83.174545 2584.840088
12/1/17 94.715607 2673.610107
1/1/18 94.547913 0.63 2823.810059
2/1/18 91.521347 2713.830078
3/1/18 84.631676 2640.870117
4/1/18 92.186485 0.63 2648.050049
5/1/18 87.410004 2705.27002
6/1/18 93.269997 2767.320068

Solutions

Expert Solution


Important note: Below table is pasted from A4:G29 (do same in your excel, it is important for formula reference given below)

Month

Price

Dividend

Price

6/1/2016

59.11

2098.86

DRI Return

SP Return

7/1/2016

57.44647

0.56

2173.6

-1.866906%

3.560985%

8/1/2016

58.04353

2170.95

1.039334%

-0.121924%

9/1/2016

57.7422

2168.27

-0.519145%

-0.123445%

10/1/2016

61.00974

0.56

2126.15

6.628670%

-1.942568%

11/1/2016

69.65522

2198.81

14.170650%

3.417452%

12/1/2016

69.10405

2238.83

-0.791283%

1.820076%

1/1/2017

69.63622

0.56

2278.87

1.580465%

1.788436%

2/1/2017

71.52033

2363.64

2.705647%

3.719816%

3/1/2017

80.12996

2362.72

12.038024%

-0.038920%

4/1/2017

81.58565

0.56

2384.2

2.515525%

0.909121%

5/1/2017

85.74679

2411.8

5.100333%

1.157625%

6/1/2017

87.20274

2423.41

1.697971%

0.481378%

7/1/2017

80.87755

0.63

2470.3

-6.530983%

1.934883%

8/1/2017

79.70876

2471.65

-1.445129%

0.054643%

9/1/2017

76.49479

2519.36

-4.032146%

1.930298%

10/1/2017

79.88355

1.26

2575.26

6.077230%

2.218814%

11/1/2017

83.17455

2584.84

4.119737%

0.372004%

12/1/2017

94.71561

2673.61

13.875714%

3.434256%

1/1/2018

94.54791

0.63

2823.81

0.488099%

5.617870%

2/1/2018

91.52135

2713.83

-3.201092%

-3.894737%

3/1/2018

84.63168

2640.87

-7.527939%

-2.688450%

4/1/2018

92.18649

0.63

2648.05

9.671094%

0.271878%

5/1/2018

87.41

2705.27

-5.181325%

2.160834%

6/1/2018

93.27

2767.32

6.704030%

2.293673%

Formula or equation in excel:

Month

Price

Dividend

Price

42522

59.11

2098.86

DRI Return

SP Return

42552

57.446472

0.56

2173.600098

=(B6-B5+C6)/B5

=(D6-D5)/D5

42583

58.043533

2170.949951

=(B7-B6+C7)/B6

=(D7-D6)/D6

42614

57.742203

2168.27002

=(B8-B7+C8)/B7

=(D8-D7)/D7

42644

61.009743

0.56

2126.149902

=(B9-B8+C9)/B8

=(D9-D8)/D8

42675

69.65522

2198.810059

=(B10-B9+C10)/B9

=(D10-D9)/D9

42705

69.10405

2238.830078

=(B11-B10+C11)/B10

=(D11-D10)/D10

42736

69.636215

0.56

2278.870117

=(B12-B11+C12)/B11

=(D12-D11)/D11

42767

71.520325

2363.639893

=(B13-B12+C13)/B12

=(D13-D12)/D12

42795

80.129959

2362.719971

=(B14-B13+C14)/B13

=(D14-D13)/D13

42826

81.585648

0.56

2384.199951

=(B15-B14+C15)/B14

=(D15-D14)/D14

42856

85.746788

2411.800049

=(B16-B15+C16)/B15

=(D16-D15)/D15

42887

87.202744

2423.409912

=(B17-B16+C17)/B16

=(D17-D16)/D16

42917

80.877548

0.63

2470.300049

=(B18-B17+C18)/B17

=(D18-D17)/D17

42948

79.708763

2471.649902

=(B19-B18+C19)/B18

=(D19-D18)/D18

42979

76.494789

2519.360107

=(B20-B19+C20)/B19

=(D20-D19)/D19

43009

79.883553

1.26

2575.26001

=(B21-B20+C21)/B20

=(D21-D20)/D20

43040

83.174545

2584.840088

=(B22-B21+C22)/B21

=(D22-D21)/D21

43070

94.715607

2673.610107

=(B23-B22+C23)/B22

=(D23-D22)/D22

43101

94.547913

0.63

2823.810059

=(B24-B23+C24)/B23

=(D24-D23)/D23

43132

91.521347

2713.830078

=(B25-B24+C25)/B24

=(D25-D24)/D24

43160

84.631676

2640.870117

=(B26-B25+C26)/B25

=(D26-D25)/D25

43191

92.186485

0.63

2648.050049

=(B27-B26+C27)/B26

=(D27-D26)/D26

43221

87.410004

2705.27002

=(B28-B27+C28)/B27

=(D28-D27)/D27

43252

93.269997

2767.320068

=(B29-B28+C29)/B28

=(D29-D28)/D28

jeff jeffy answered 2 years ago
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