Stock.xlsx shows the monthly stock returns of Microsoft (MSFT) and Apple(APPL) from August 2011 to July 2016. Please use Excel to answer the following questions.

a. Compute means of two stock returns. Use 'MEAN' function. Based on these numbers, which stock would you invest if you want to maximize your average monthly return?

b. Compute medians and ranges of two stock returns. Use 'MEDIAN', 'MIN' and ?MAX? function.

c. Compute sample variances and sample standard deviations of two stock returns. Use 'VAR.S' and 'STDEV.S'. Based on these numbers, which stock would you invest if you want to minimize your risk?

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A 1 Microsoft 0.0512 2 0.0733 0.0080 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 -0.0581 0.0244 0.0310 -0.0121 -0.0761 0.0640 0.0168 0.2438 -0.0225 -0.0281 0.0413 -0.0615 -0.0212 0.1813 -0.0807 0.0543 -0.1296 0.0000 0.0062 0.0469 0.0601 0.0009 0.0357 0.0500 0.0028 -0.0084 0.0660 0.0128 -0.0210 -0.0133 0.1013 0.0904 0.0108 0.0813 -0.1252 -0.0223 0.1069 0.1298 0.0493 -0.0217 0.0294 0.0074 B Apple 0.0456 0.0901 -0.0427 0.0718 -0.1399 0.1272 -0.0013 -0.0752 -0.1102 -0.0058 0.0834 -0.0218 -0.0662 -0.0329 -0.0372 0.0453 0.0058 -0.0314 0.1008 0.0614 -0.0719 0.1060 0.0720 -0.0171 0.0775 0.0287 0.0277 0.0787 0.0994 0.0200 0.0575 -0.1077 0.0089 0.0701 0.0964 -0.0215 0.0838 0.1412 -0.1183 0.0224 0.0003 0.0029 -0.0253 -0.1441 -0.0907 -0.0470 -0.0124 -0.0464 -0.1076 -0.0190 0.0028 0.0381 0.0939 -0.0037 0.0458 0.0013 0.0109 -0.0670 -0.0107 -0.0260 -0.0132 0.0195 0.1053 0.0802 0.1883 0.1533 0.1271 0.0301 0.0597 -0.0333 -0.0558 -0.0222 0.0615 0.1765 -0.0091 C A 1 Microsoft 0.0512 2 0.0733 0.0080 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 -0.0581 0.0244 0.0310 -0.0121 -0.0761 0.0640 0.0168 0.2438 -0.0225 -0.0281 0.0413 -0.0615 -0.0212 0.1813 -0.0807 0.0543 -0.1296 0.0000 0.0062 0.0469 0.0601 0.0009 0.0357 0.0500 0.0028 -0.0084 0.0660 0.0128 -0.0210 -0.0133 0.1013 0.0904 0.0108 0.0813 -0.1252 -0.0223 0.1069 0.1298 0.0493 -0.0217 0.0294 0.0074 B Apple 0.0456 0.0901 -0.0427 0.0718 -0.1399 0.1272 -0.0013 -0.0752 -0.1102 -0.0058 0.0834 -0.0218 -0.0662 -0.0329 -0.0372 0.0453 0.0058 -0.0314 0.1008 0.0614 -0.0719 0.1060 0.0720 -0.0171 0.0775 0.0287 0.0277 0.0787 0.0994 0.0200 0.0575 -0.1077 0.0089 0.0701 0.0964 -0.0215 0.0838 0.1412 -0.1183 0.0224 0.0003 0.0029 -0.0253 -0.1441 -0.0907 -0.0470 -0.0124 -0.0464 -0.1076 -0.0190 0.0028 0.0381 0.0939 -0.0037 0.0458 0.0013 0.0109 -0.0670 -0.0107 -0.0260 -0.0132 0.0195 0.1053 0.0802 0.1883 0.1533 0.1271 0.0301 0.0597 -0.0333 -0.0558 -0.0222 0.0615 0.1765 -0.0091 C

Answer rating: 100% (QA)

Calculation is done for given data using excel a Means of two stocks Microsoft Apple Means 002037... View the full answer