From her Investment Analysis class. Laura has been given an assignment to evaluate several securities on a risk-return tradeoff basis. The specific securities to be researched are International Business Machines, Helmerich & Payne. Inc.. and the S&P 500 Index. The respective ticker symbols for the stocks are IBM and HP. She finds the following data on the securities in question.

Note: The value of the $&P 500 index includes dividends Questions Part One
Use the data that Laura has found on the 3 securities and create a spreadsheet to calculate the holding period return for each year and the average return over a 5-year period. Specifically, the HPR will be based upon 5 unique periods of 1 year (i.e.. 2006 to 2007, 2007 to 2008. 2008 to 2009. 2009 to 2010, 2010 to 2011). Use the following formula:
H PR = (Inc + (Vn, - Vo)]/Vo
Where
Inc = income during period
Vn = ending investment value
Vo = beginning investment value
Part TWO
Create a spreadsheet similar to the spreadsheet for Table 4.9 (on page 139), which can be viewed at www.myfinancelab.com, in order to evaluate the risk-return tradeoff.
b. Calculate the standard deviations of the returns for IBM, HP, and the S&P 500 Index.
c. What industries are associated with IBM and HP?
d. Based on your answer in part c and your results for the average return and the standard deviation, what conclusions can Laura make about investing in either IBM or HP?

Year 2006 2007 2008 2009 2010 2011 PricegM Dividend a Priceup Dividende $ 108.10 1.50 $ 84.16 1.90 22.75 $ 97.15 1.10 $ 130.90 2.15 $ 146.76 2.50 $ 183.88 2.90 24.47 40.07 39.88 48.48 58.36 0.19 0.18 0.20 1,115.10 0.26 1,257.60 0.17 0.22 1,418.30 1,25760 1,468.40 Valuesar 903.30