6-16 (Expected return, standard deviation, and the Capital Asset Pricing Model) Below you have been provided the prices for Merck and the S&P 500 Index.

	Merck	S&P 500 Index
2011
June	$32.27	$1320.64
July	32.75	1292.28
August	30.87	1218.89
September	29.49	1131.42
October	31.83	1253.30
November	29.59	1246.96
December	30.33	1257.60
2012
January	31.60	1312.41
February	35.74	1356.68
March	36.90	1408.47
April	41.02	1397.91
May	39.19	1310.33
June	42.50	1355.69

Calculate the monthly holding returns for Merck and the S&P 500 Index.

What are the average monthly returns and standard deviations for both?

6-16 (Expected return, standard deviation, and the Capital Asset Pricing Model) Below you have been provided the prices for Merck and the S&P 500 Index. Merck S&P 500 Index 2011 June $32.27 $1320.64 July 32.75 1292.28 August 30.87 1218.89 September 29.49 1131.42 October 31.83 1253.30 November 29.59 1246.96 December 30.33 1257.60 2012 January 31.60 1312.41 February 35.74 1356.68 March 36.90 1408.47 April 41.02 1397.91 May 39.19 1310.33 June 42.50 1355.69 a. Calculate the monthly holding returns for Merck and the S&P 500 Index. b. What are the average monthly returns and standard deviations for both?