In: Finance
1. The following table contains closing monthly stock prices for Oracle Corporation (ORCL), Microsoft Corporation (MSFT), and NVidia (NVDA) for the first half of 2017.
Ticker |
6/30/2017 |
5/31/2017 |
4/30/2017 |
3/31/2017 |
2/28/2017 |
1/31/2017 |
ORCL |
50.14 |
45.39 |
44.96 |
44.61 |
42.59 |
40.11 |
MSFT |
68.93 |
69.84 |
68.46 |
65.86 |
63.98 |
64.65 |
NVDA |
144.56 |
144.35 |
104.3 |
108.93 |
101.48 |
109.18 |
a) Enter the data, as shown, into a worksheet and format the table as shown.
b) Create a formula to calculate the monthly rate of return during the first semester of 2017 and for each company. Format the results as percentages with two decimal places.
c) Calculate the total return for the entire holding period, the compound average monthly rate of return, the average monthly rate of return using the AVERAGE function, and the average monthly rate of return using the GEOMEAN function.
d) Create a line chart showing the stock prices from January to June 2017 for these companies. Make sure to title the chart and label the axes. Also present the data from January to June and use Times New Roman for the title, labels, and numbers. Select a different dash type for each line representing each company.
1/31/2017 |
2/28/2017 |
3/31/2017 |
4/30/1017 |
5/31/2017 |
6/30/2017 |
||
ORCL |
40.11 |
42.59 |
44.61 |
44.96 |
45.39 |
50.14 |
|
change in price (current month price-previous month) |
2.48 |
2.02 |
0.35 |
0.43 |
4.75 |
||
change in price/previous month price |
6.18% |
4.74% |
0.78% |
0.96% |
10.46% |
||
Monthly rate of return Using average function |
4.63% |
||||||
Monthly rate of return using geomean function |
2.97% |
||||||
MSFT |
64.65 |
63.98 |
65.86 |
68.86 |
69.84 |
68.93 |
|
change in price (current month price-previous month) |
-0.67 |
1.88 |
3 |
0.98 |
-0.91 |
||
change in price/previous month price |
-1.05% |
2.85% |
4.36% |
1.40% |
-1.32% |
||
Monthly rate of return Using average function |
1.25% |
||||||
Monthly rate of return using geomean function |
geomean =[ (1+return1)*(1+return 2)*………(1+return5)]^(1/n) -1 |
(.9895*1.0285*1.0446*1.014*.9868)^(1/5)-1 |
1.24% |
||||
NVDA |
109.18 |
101.48 |
108.93 |
104.3 |
144.35 |
144.56 |
|
change in price (current month price-previous month) |
-7.7 |
7.45 |
-4.63 |
40.05 |
0.21 |
||
change in price/previous month price |
-7.05% |
7.34% |
-4.25% |
38.40% |
0.15% |
||
Monthly rate of return Using average function |
6.92% |
||||||
Monthly rate of return using geomean function |
geomean =[ (1+return1)*(1+return 2)*………(1+return5)]^(1/n) -1 |
(.98995*1.0734*.9575*1.384*.1.015)^(1/5)-1 |
7.40% |