Question: 1. Expand the spreadsheet and compute monthly HPRs for each of the 24 months using the HPR formula in Lesson 1. Make sure to
1. Expand the spreadsheet and compute monthly HPRs for each of the 24 months using the HPR formula in Lesson 1. Make sure to include the dividends. 2. Calculate the arithmetic mean of the monthly HPRS for Southwest. 3. Calculate the geometric mean of the monthly HPRs for Southwest. 4. Expand the spreadsheet to calculate the standard deviation of the monthly HPRs using an approach similar to the one illustrated in the Measuring Risk section of Lesson 1. 5. Calculate the monthly 5% VaR using the variance-covariance approach. 6. Calculate the annualized version of your answers from parts 2, 3 and 4. (Your answers should be the annualized versions of only the final answers of parts 2, 3 and 4, not annualized versions of each monthly HPR.) Report your final answers for parts 2 through 6 in the yellow cells in column E of the spreadsheet.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
