Question: Additional Problem a. Using information from Yahoo! Finance, calculate the average annual return and standard deviation of annual returns for the past 10 years (Dec

Additional Problem

a. Using information from Yahoo! Finance, calculate the average annual return and standard deviation of annual returns for the past 10 years (Dec 31 to Dec 31or the last trading day of each year if Dec 31 is a weekend) for Apple stock. Note: Use adjusted close to include the effect of dividends.

b. What compound annual return is equivalent to the return on Apple stock that you calculated in part a?

Note: For problem 2, you will need to get the data by clicking on the link called Historical Prices and selecting Daily Prices. Page down until you see Download to Spreadsheet and open the file. This will be a CSV (comma-separated) file, so I recommend copying and pasting the entire sheet into a regular Excel spreadsheet (XLSX). I would then use the VLOOKUP function to help you find the relevant year-end data. One complication when identifying year-end data is that there are no prices on weekends. With a bit of work you can work around this.

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