Question: a. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate average returns over the five-year period.
Data as given in the problem are shown below:
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We now calculate the rates of return for the two companies and the index:
Bartman _____Reynolds _____Index
2010
2009
2008
2007
2006
Average
To get the average, you could get the column sum and divide by 5, but you could also use the function wizard, fx. Click fx, then statistical, then Average, and then use the mouse to select the proper range. Do this for Bartman and then copy the cell for the other items.
b. Calculate the standard deviation of the returns for Bartman, Reynolds, and the Market Index.
Use the function wizard to calculate the standard deviations.
Bartman ______Reynolds ______Index
Standard deviation of returns
c. Now calculate the coefficients of variation Bartman, Reynolds, and the Market Index.
Bartman ______Reynolds ______Index
Coefficient of Variation
d. Construct a scatter diagram graph that shows Bartman
Reynolds Incorporated Stock Price Bartman Industries Stock Price Market Index Includes Divs. 11,663.98 8,785.70 8,679.98 6,434.03 5,602.28 4,705.97 Dividend Dividend Year $1.150 $3.000 2.900 2.750 2.500 2.250 2010 2009 2008 2007 2006 2005 $17.250 $48.750 52.300 48.750 14.750 1.060 16.500 1.000 10.750 11.375 7.625 0.950 57.250 60.000 0.900 0.850 55.750 2.000
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