Question

Disney Annual Historical Prices

Date	Open	High	Low	Adj. Close
10/1/2005	23.80	24.65	22.57	20.21
10/1/2006	30.36	31.55	29.98	26.37
10/1/2007	34.38	35.69	33.57	30.13
10/1/2008	30.30	31.06	21.25	22.78
10/1/2009	27.76	29.98	26.84	24.43
10/1/2010	33.30	36.52	33.08	32.62
10/1/2011	30.03	36.60	28.19	31.84
10/1/2012	52.31	53.15	48.80	45.59
10/1/2013	64.37	69.87	63.10	64.63
10/1/2014	89.08	91.98	78.54	87.17
10/1/2015	102.97	115.40	99.88	110.52
10/1/2016	92.47	94.40	90.32	91.30
10/1/2017	99.31	100.98	96.80	97.81

Comparing the first six years (Period 1) with the last six years (Period 2) which of the

two periods was more volatile measured by standard deviation and coefficient of variation?

Answer 1

Step

1. Separate the data for 1st 6 years and last 6 years
2. Using AVERAGE() function, find mean for all open, high, clos and adj close price
3. USE STDEV() for finding SD of open, high, clos and adj close price
4. Coeffectcient of Var = SD/ mean

After comparision of above 2 periods, it was found that last 6 years got higher SD and higher coefficient of variation than 1st 6 years. Hence, Based on data, it is safe to asume that last 6 years were more volatile.

Data for 1st 6 years
Date	Open	High	Low	Adj. Close
10-01-2005	23.80	24.65	22.57	20.21
10-01-2006	30.36	31.55	29.98	26.37
10-01-2007	34.38	35.69	33.57	30.13
10-01-2008	30.30	31.06	21.25	22.78
10-01-2009	27.76	29.98	26.84	24.43
10-01-2010	33.30	36.52	33.08	32.62
Average	29.98	31.58	27.88	26.09
SD	3.84	4.29	5.24	4.63
SD/Mean	0.13	0.14	0.19	0.18
Data for 2nd 6 years
10-01-2012	52.31	53.15	48.80	45.59
10-01-2013	64.37	69.87	63.10	64.63
10-01-2014	89.08	91.98	78.54	87.17
10-01-2015	102.97	115.40	99.88	110.52
10-01-2016	92.47	94.40	90.32	91.30
10-01-2017	99.31	100.98	96.80	97.81
Average	83.42	87.63	79.57	82.84
SD	20.39	22.44	20.22	23.66
SD/Mean	0.24	0.26	0.25	0.29

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