You are to calculate the mean and standard deviation for the rate of returns for IBM...

60.1K

Verified Solution

Question

Basic Math

You are to calculate the mean and standard deviation for therate of returns for IBM and GE. Use monthly values for the periodAugust 1, 2007 through August 1, 2018

Q10.You are to calculate the mean and standard deviation for therate of returns for IBM and GE. Use monthly values for theperiodAugust 1, 2007 through August 1, 2018. Data can be obtainedfrom the WWW as follows 1.Go to http:www.yahoo.com. Select theFinance option 2.Enter your stock's symbol (IBM and GE) one byone.3.Under the Summary tab select \"Historical Data\" 4.Enter thedates correctly under the ‘set date range’ for the selectedstock.Make sure the time period covered is IBM and GE(August 1,2007 through August 1, 2018). 5.Select “Historic Prices and selectcorrect frequency (in this case monthly)”. Further,click on “Apply”tab.6.Then just belowApply tab is download the spreadsheet.Download the spreadsheet as an excel file and save it.7.Delete allthe columns except“Date” and “Adjusted close” columnsfor all threestocks.Keep only one column of “Date”.8.Make sure the data is inascending order (by date) (i.e. old date on the top and most recentdate on the bottom of the “Date” column).9.Calculate the RateofReturns (Xt -Xt-1 ) / Xt-1for all three stocks.

Answer & Explanation Solved by verified expert
4.1 Ratings (618 Votes)
As per the question I have collected data for adjusted closingfor two stocks namely IBM nad GE for the period of 192017 to192018 Then I have calculated Rate of Return for both the stocksby using the formulaxtxt1xt1 and then just havecalculated the mean and    See Answer
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!
Become a Member

Other questions asked by students