The Stock Data below contains monthly data for several stocks and the S&P 500 Index (i.e., the
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Question:
TheStock Data belowcontains monthly data for several stocks and the S&P 500 Index (i.e., the market).
- Compute the average monthly return for INTC and the S&P 500.
- Compute the annualized return on a Simple Basis for INTC and the S&P 500.
- Compute the annual variance and the annual standard deviation for INTC and the S&P 500.
- Compute the annual variance and the annual standard deviation for a stock if the stock's quarterly variance is 3%.
| Monthly Return Data for Several Stocks and the S & P 500 | |||||||
| Month | Eating | Dell | INTC | MSFT | NT | PFE | S&P 500 |
| 1 | -2.90% | -9.51% | 1.94% | -16.18% | -3.23% | 4.31% | 2.40% |
| 2 | 4.79% | 10.51% | 10.47% | 12.03% | 16.66% | 7.61% | 5.20% |
| 3 | 2.91% | 7.93% | 12.07% | 8.29% | -0.72% | -0.56% | 4.00% |
| 4 | 4.25% | -7.34% | -10.77% | -12.40% | 2.16% | -5.94% | -0.50% |
| 5 | 5.30% | -14.27% | 5.18% | 3.30% | 13.38% | 14.35% | 9.00% |
| 6 | -0.88% | 3.70% | -1.64% | 7.31% | 10.56% | 6.54% | 1.90% |
| 7 | 3.54% | 1.78% | 7.50% | 16.59% | -3.93% | -0.90% | -0.40% |
| 8 | 3.76% | -15.77% | 4.65% | 19.34% | 5.85% | -1.45% | -2.30% |
| 9 | 2.94% | -4.16% | 2.96% | 6.42% | -2.76% | 10.47% | 2.10% |
| 10 | 2.86% | -4.34% | -0.72% | 0.00% | 5.11% | -6.24% | 2.40% |
| 11 | -0.86% | -15.88% | 14.50% | 6.32% | 1.08% | -1.44% | -6.70% |
| 12 | 0.41% | 35.06% | 1.90% | 6.76% | 3.74% | -13.12% | 1.30% |
| 13 | -2.85% | 21.97% | 3.73% | 12.15% | 2.06% | 2.76% | 2.60% |
| 14 | -3.05% | 11.46% | -5.39% | 4.74% | -4.55% | -6.39% | -2.50% |
| 15 | 4.85% | 29.49% | 22.15% | 25.86% | 17.46% | 17.24% | 9.80% |
| 16 | 1.26% | 14.75% | -2.59% | 4.11% | -0.45% | -2.66% | -0.70% |
| 17 | 5.82% | -6.92% | -5.32% | -12.50% | -1.81% | 18.13% | -0.30% |
| 18 | -7.20% | 0.00% | -24.99% | -7.52% | -11.98% | -5.49% | -9.00% |
| 19 | -0.86% | -25.57% | -0.38% | 2.44% | -2.09% | -0.53% | -4.90% |
| 20 | 5.10% | 21.51% | 0.75% | 1.19% | 12.84% | 3.01% | -0.40% |
| 21 | 1.69% | 23.49% | 11.94% | 13.33% | -2.37% | 11.90% | 6.40% |
| 22 | -0.83% | 40.97% | 2.66% | 4.16% | 9.71% | 0.00% | 2.70% |
| 23 | 0.86% | 22.31% | 18.83% | 30.40% | -1.77% | 11.30% | 4.40% |
| 24 | 4.66% | 11.58% | 4.37% | 5.73% | 5.86% | 17.59% | 7.20% |
| 25 | 4.45% | 12.89% | -2.10% | 2.29% | 6.81% | 1.90% | 2.40% |
| 26 | 0.34% | -17.99% | 5.35% | -6.71% | 11.55% | 1.87% | 0.30% |
| 27 | 0.00% | 5.87% | 13.20% | 10.86% | 7.14% | 8.65% | 4.30% |
| 28 | 1.18% | -1.01% | -16.59% | -6.89% | -2.67% | -5.73% | -4.60% |
| 29 | 6.25% | 17.36% | 1.08% | 7.89% | 8.90% | 11.49% | 4.70% |
| 30 | 0.37% | 13.46% | 5.32% | 15.99% | 0.31% | 6.43% | 2.40% |
| 31 | 5.95% | 2.32% | -14.65% | 4.40% | -1.57% | -0.57% | -1.60% |
| 32 | 0.00% | -25.48% | -3.83% | 5.48% | 6.69% | 9.98% | 1.30% |
| 33 | 6.43% | -5.52% | 0.91% | 3.59% | 4.18% | -6.88% | -4.00% |
| 34 | 7.72% | 9.03% | 19.51% | 14.40% | 3.15% | 26.55% | 11.40% |
| 35 | -6.22% | 24.39% | 22.21% | 8.09% | 3.89% | -13.09% | -1.90% |
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Related Book For 
Investment Analysis and Portfolio Management
ISBN: 978-1305262997
11th Edition
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
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