Question

In: Finance

Calculate Adidas' and S&P 500 Index's average rate of returns and standard deviation, based on the...

Calculate Adidas' and S&P 500 Index's average rate of returns and standard deviation, based on the data below.

DATA

Month

Adidas

S&P 500

Stock Prices

Index

Jan-19

52.9

2368.45

Feb-19

67.16

2363.64

Mar-19

68.73

2362.72

Apr-19

65.41

2384.2

May-19

62.99

2411.8

Jun-19

70.1

2423.41

Jul-19

69.05

2470.3

Aug-19

62.81

2471.65

Sep-19

61.85

2519.36

Oct-19

64.99

2575.26

Nov-19

70.42

2647.58

Dec-19

72.55

2673.61

Solutions

Expert Solution

Month Adidas S&P 500
Stock Prices Deviation ^2=Mthly.price-65.75)^2 Index Deviation ^2=Mthly.price-2472.67)^2
19-Jan 52.9 165.12 2368.45 10861.81
19-Feb 67.16 1.99 2363.64 11887.54
19-Mar 68.73 8.88 2362.72 12089.00
19-Apr 65.41 0.12 2384.2 7826.94
19-May 62.99 7.62 2411.8 3705.16
19-Jun 70.1 18.92 2423.41 2426.55
19-Jul 69.05 10.89 2470.3 5.62
19-Aug 62.81 8.64 2471.65 1.04
19-Sep 61.85 15.21 2519.36 2179.96
19-Oct 64.99 0.58 2575.26 10524.71
19-Nov 70.42 21.81 2647.58 30593.51
19-Dec 72.55 46.24 2673.61 40376.88
Total for 12 mths. 788.96 306.02 29671.98 132478.71
Average (Total /12) 65.75 306.02/(12-1)= Variance =Sum deviation^2/(n-1) 2472.67 132478.71/(12-1)=
27.82 Variance 12043.52
5.27 Std.deviation=Variance^(1/2) 109.74
Sq. rt. Of variance
Average Price 65.75 2472.67
Variance 27.82 12043.52
Std. deviation 5.27 109.74

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