Below are monthly returns for the 4-week T-bill, the S&P 500 index, Duke Energy (DUK), Netflix (NFLX),
Fantastic news! We've Found the answer you've been seeking!
Question:
Below are monthly returns for the 4-week T-bill, the S&P 500 index, Duke Energy (DUK), Netflix (NFLX), Amazon.com (AMZN), and The Coca-Cola Company (KO). Use the monthly returns and Excel functions, formulas, and cell references to calculate the 1) monthly average return, 2) monthly standard deviation of returns, 3) the annualized average return using the EAR formula, and 4) the annualized risk premium. Format cells appropriately.
What formulas to use in order to get the Annualized risk premium.
Transcribed Image Text:
A B D E F M P Instructions: Below are monthly returns for the 4-week I-bill, the S&P 500 index, Duke Energy (DUK), Netflix (NFLX), Amazon.com (AMZN), and Ihe Coca-Cola Company (KO). Use the monthly returns and Excel functions, formulas, and cell references to calculate the 1) monthly average return, 2) monthly standard deviation 1 of returns, 3) the annualized average return using the EAR formula, and 4) the annualized risk premium. Format cells appropriately. 2 3 Date T-bill SP500 DUK NFLX AMZN ко T-bill SP500 DUK NFLX AMZN ко 201309 Monthly average return Monthly std. dev. Annualized average return 4 0.00% 2.97% 2.93% 8.91% 11.27% -0.79% 5 201310 6 201311 7 201312 8 201401 9 201402 10 201403 0.00% 4.46% 7.41% 4.29% 16.44% 5.22% 0.00% 2.80% -2.47% 13.43% 8.13% 1.57% 0.00% 2.36% -0.27% 0.65% 1.31% 3.51% Annualized risk premium 0.00% -3.56% 2.33% 11.18% -10.06% -8.45% 0.00% 4.31% 0.37% 8.87% 0.95% 1.00% Check figures 0.00% 0.69% 1.59% -21.00% -7.11% 1.20% Annualized risk premium 0.00% 12.26% 10.11% 68.77% 53.14% 6.99% 11 201404 12 201405 13 201406 14 201407 15 201408 16 201409 17 201410 18 201411 0.00% 0.62% 4.59% -8.52% -9.58% 6.35% 0.00% 2.10% -4.58% 29.74% 2.77% 0.29% 0.00% 1.91% 5.52% 5.45% 3.91% 3.54% Be sure to use appropriate Excel formulas and functions to calculate items. Use appropriate number formats. Typed in numbers receive O credit. 0.00% -1.51% -2.78% -4.06% -3.63% -6.55% 0.00% 3.77% 2.58% 12.99% 8.32% 6.18% 0.00% -1.55% 2.19% -5.54% -4.90% 2.25% 0.00% 2.32% 9.87% -12.95% -5.27% -1.11% 0.00% 2.45% -1.52% -11.76% 10.86% 7.04% 19 201412 0.00% -0.42% 4.27% -1.44% -8.35% -5.17% 20 201501 0.00% -3.10% 4.31% 29.33% 14.24% -2.49% A B D E F M P Instructions: Below are monthly returns for the 4-week I-bill, the S&P 500 index, Duke Energy (DUK), Netflix (NFLX), Amazon.com (AMZN), and Ihe Coca-Cola Company (KO). Use the monthly returns and Excel functions, formulas, and cell references to calculate the 1) monthly average return, 2) monthly standard deviation 1 of returns, 3) the annualized average return using the EAR formula, and 4) the annualized risk premium. Format cells appropriately. 2 3 Date T-bill SP500 DUK NFLX AMZN ко T-bill SP500 DUK NFLX AMZN ко 201309 Monthly average return Monthly std. dev. Annualized average return 4 0.00% 2.97% 2.93% 8.91% 11.27% -0.79% 5 201310 6 201311 7 201312 8 201401 9 201402 10 201403 0.00% 4.46% 7.41% 4.29% 16.44% 5.22% 0.00% 2.80% -2.47% 13.43% 8.13% 1.57% 0.00% 2.36% -0.27% 0.65% 1.31% 3.51% Annualized risk premium 0.00% -3.56% 2.33% 11.18% -10.06% -8.45% 0.00% 4.31% 0.37% 8.87% 0.95% 1.00% Check figures 0.00% 0.69% 1.59% -21.00% -7.11% 1.20% Annualized risk premium 0.00% 12.26% 10.11% 68.77% 53.14% 6.99% 11 201404 12 201405 13 201406 14 201407 15 201408 16 201409 17 201410 18 201411 0.00% 0.62% 4.59% -8.52% -9.58% 6.35% 0.00% 2.10% -4.58% 29.74% 2.77% 0.29% 0.00% 1.91% 5.52% 5.45% 3.91% 3.54% Be sure to use appropriate Excel formulas and functions to calculate items. Use appropriate number formats. Typed in numbers receive O credit. 0.00% -1.51% -2.78% -4.06% -3.63% -6.55% 0.00% 3.77% 2.58% 12.99% 8.32% 6.18% 0.00% -1.55% 2.19% -5.54% -4.90% 2.25% 0.00% 2.32% 9.87% -12.95% -5.27% -1.11% 0.00% 2.45% -1.52% -11.76% 10.86% 7.04% 19 201412 0.00% -0.42% 4.27% -1.44% -8.35% -5.17% 20 201501 0.00% -3.10% 4.31% 29.33% 14.24% -2.49%
Expert Answer:
Answer rating: 100% (QA)
Mnthly verge return fr Tbill vergeB4B20 Mnthly std dev fr TbillSTDE... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Monthly returns for the Toronto Stock Exchange Index and the following selected stocks on the Toronto Stock Exchange were recorded for the years 2011 to 2015: Barrick Gold (ABX) Bombardier (BBD.B)...
-
Duke Energy Corporation accounts for certain investments under the equity method, and as of December 31, 2008, Duke reported equity method investments of $473 million on its balance sheet and $696...
-
The average monthly cell phone bill was reported to be $50.07 by the U.S. Wireless Industry. Random sampling of a large cell phone company found the following monthly cell phone charges: At the 0.05...
-
For OEM & Aftermarket Parts Distribution Companies (reference an example company) Describe the sales presentation method: Salesperson to buyer? Salesperson to buyer to group? Sales team to buyer...
-
The average cost of a gallon of unleaded gasoline in Greater Cincinnati was reported to be $2.41 (The Cincinnati Enquirer, February 3, 2006). During periods of rapidly changing prices, the newspaper...
-
Perform the necessary variations to derive Equation 7.62 . y [8GA(x) (0-4)] -m(x)- + p(x, t) by dx t + EI(x)- : ) + GA(2) (3/2/2-4) -k2(x)m(x)- - t EI(x) L (-)}]* -[{GA(x) ( x dt = 0. (7.62)
-
Under the assumptions of the linear model, the residual plot will exhibit a linear pattern. In Exercises 9 and 10, determine whether the statement is true or false. If the statement is false, rewrite...
-
State whether or not a trust is created in each of the following situations: (a) A declares herself trustee of the bulk of my securities in trust for B. (b) A, the owner of Blackacre, purports to...
-
The following data relate to the direct materials cost for the production of automobile tires: Actual: 61,700 lbs. at $2.05 per lb. Standard: 60,500 lbs. at $2.00 per lb. a. Determine the direct...
-
Consider the following parlor game to be played between two players. Each player begins with three chips: one red, one white, and one blue. Each chip can be used only once. To begin, each player...
-
3. The following initial rate data were measured for the reaction: BF3 (g) NH3 (g) -----> F3BNH3 (g) Experiment [BF3] (M) [NH3] (M) Initial Rate (M/s) 1 0.250 0.250 0.2130 2 0.250 0.125 0.1065 3...
-
A sleepwear buyer has an opening stock figure of $ 1 7 0 , 0 0 0 at retail, which carries a 6 1 % markup. On March 3 1 , new purchases since the start of the period were $ 9 9 0 , 0 0 0 at retail,...
-
Solve each of the following proportions. (a) 5: n=35:21 (c) 1.15 0.85=k: 1.19 (d) 3.60 m = 10.8:8.10 (e) 5 15 6 = 7 14 5 t (b) 10 6 30:x 86 54 (f) y: 9 = 45 8 4 64
-
Calculate. 21 7 30 6.251
-
To what extent are the cultural changes of these years a cause or consequence of America's industrialization in the late nineteenth century? Explain in detail how the rural beginnings of American...
-
In the current year K gifted shares of a public corporation to his spouse. The shares, that originally cost $ 1 0 , 0 0 0 , had a value of $ 1 5 , 0 0 0 at the time of the gift. During the year, K s...
-
} (2) Calculate the freezing (melting) temperature of water (TM= ?K) at a pressure of P = 100 atm. H2O(s) Psolid Pliquid TM = H2O(l) AHO 0.917 g/cm M =6010 J/mole at T=273 K, P = 1 atm = 1.00 g/cm...
-
Which of the ocean zones shown would be home to each of the following organisms: lobster, coral, mussel, porpoise, and dragonfish? For those organisms you identify as living in the pelagic...
-
When the Dow-Jones Industrial Index increases it usually means that the economy is growing, which in turn usually means that the unemployment rate is low. A statistics professor pointed out that in...
-
Refer to Exercise 7.45. Compute the covariance and the coefficient of correlation. In exercise 7.45 The following table lists the bivariate distribution of X and Y . 2 .5 .1 .1 .3 2.
-
Repeat Exercise 15.1 with the following frequencies: In exercise 15.1 Consider a multinomial experiment involving n = 300 trials and k = 5 cells. The observed frequencies resulting from the...
-
How might the three categories of management assertions provide a powerful tool for the financial statement auditor?
-
Summarize the major changes made in ISO 9000-2015.
-
1. E-Z Open Manufacturing Company is a leading maker of manual can openers. In the year just closed, E-Z Open controlled 17.2% of the manual can opener market in North America. That placed the...
Study smarter with the SolutionInn App