1. Consider the following data concerning S&P 500, IBM, and the return on 1 year...
80.2K
Verified Solution
Link Copied!
Question
Finance
1. Consider the following data concerning S&P 500, IBM, and the return on 1 year U.S. Treasury Bills. IBM AND S&P500 Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 S&P 500 return -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% 28.58% 21.04% -9.10% -11.89% -22.10% IBM Return 17.46% -23.87% -56.85% 11.40% 26.33% 21.75% 50.59% 32.28% 56.67% 15.71% -23.83% 35.28% -44.11% 1-year T-bill 7.89% 5.86% 3.89% 3.43% 5.32% 5.94% 5.52% 5.63% 5.05% 5.08% 6.11% 3.49% 2.00% a. Compute the average, variance and standard deviation of (1) S&P 500 return and (2) IBM return. b. Compute the excess returns for S&P 500 and for IBM. c. Show by graphing the excess return of IBM against that of the S&P 500. Use Excel functions to compute beta, alpha, and R?. d. Does IBM have excess performance over S&P 500? e. Is IBM an aggressive or defensive stock? 2. Go to Yahoo Finance to downoad the monthly stock prices (adjusted price data) for Amazon.com, Inc. (AMZN) for 01/01/1998 - 09/01/2018. Compute the average monthly return and the monthly standard deviation for Amazon. 1. Consider the following data concerning S&P 500, IBM, and the return on 1 year U.S. Treasury Bills. IBM AND S&P500 Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 S&P 500 return -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% 28.58% 21.04% -9.10% -11.89% -22.10% IBM Return 17.46% -23.87% -56.85% 11.40% 26.33% 21.75% 50.59% 32.28% 56.67% 15.71% -23.83% 35.28% -44.11% 1-year T-bill 7.89% 5.86% 3.89% 3.43% 5.32% 5.94% 5.52% 5.63% 5.05% 5.08% 6.11% 3.49% 2.00% a. Compute the average, variance and standard deviation of (1) S&P 500 return and (2) IBM return. b. Compute the excess returns for S&P 500 and for IBM. c. Show by graphing the excess return of IBM against that of the S&P 500. Use Excel functions to compute beta, alpha, and R?. d. Does IBM have excess performance over S&P 500? e. Is IBM an aggressive or defensive stock? 2. Go to Yahoo Finance to downoad the monthly stock prices (adjusted price data) for Amazon.com, Inc. (AMZN) for 01/01/1998 - 09/01/2018. Compute the average monthly return and the monthly standard deviation for Amazon
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
