The following are the end-of- month prices for both the Standard & Poor’s 500 Index and Nike’s common stock.
a. Using the data here, calculate the holding- period returns for each of the months. 5
b. Calculate the average monthly return and the standard deviation for both the S& P 500 and Nike.
c. Develop a graph that shows the relationship between the Nike stock returns and the S& P 500 Index. (Show the Nike returns on the vertical axis and the S& P 500 Index returns on the horizontal axis as done in Figure
6- 5.)
d. From your graph, describe the nature of the relationship between Nike stock returns and the returns for the S& P 500 Index.

  • CreatedSeptember 11, 2015
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