Calculate the monthly returns for each of the stocks: 

a. Calculate the arithmetic average monthly return for each stock. (3 points) 

b. Calculate the geometric average monthly return for each stock. (3 points) 

c. Calculate the monthly return standard deviation for each stock. (3 points) 

d. Calculate the total percentage return (referred to in the text as the holding period return) for each stock based on purchasing a share at the end of December 2017 and holding it through the end of December 2020. In your calculations assume that any dividends are reinvested immediately in the stock rather than being stuffed under a mattress where they would earn no further returns. (3 points) 

e. If you constructed a portfolio at the end of December 2017 consisting of 100 shares of each stock and held this portfolio through the end of December 2020 (again, reinvesting all dividends), what would be the total percentage return on the portfolio? What would the portfolio’s geometric average monthly return be?

   

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Ticker Month Endin Symbol 20171229 IBM 20180131 IBM 20180228 IBM 20180329 IBM 20180430 IBM 20180531 IBM 20180629 IBM 20180731 IBM 20180831 IBM 20180928 IBM 20181031 IBM 20181130 IBM 20181231 IBM 20190131 IBM 20190228 IBM 20190331 IBM 20190430 IBM 20190531 IBM 20190630 IBM 20190731 IBM 20190831 IBM 20190930 IBM 20191031 IBM 20191130 IBM 20191231 IBM 20200131 IBM 20200229 IBM 20200331 IBM 20200430 IBM 20200531 IBM 20200630 IBM 20200731 IBM 20200831 IBM 20200930 IBM 20201031 IBM 20201130 IBM 20201231 IBM 20171229 MA 20180131 MA 20180228 MA Company Name INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR MASTERCARD INC MASTERCARD INC MASTERCARD INC Dividend Paid During Month Month 1.50 1.57 1.57 1.57 1.57 1.62 1.62 1.62 1.62 1.63 1.63 1.63 Stock Split During 0.25 Price at end of Montl 153.42 163.70 155.83 153.43 144.96 141.31 139.70 144.93 146.48 151.21 115.43 124.27 113.67 134.42 138.13 141.10 140.27 126.99 137.90 148.24 135.53 145.42 133.73 134.45 134.04 143.73 130.15 110.93 125.56 124.90 120.77 122.94 123.31 121.67 111.66 123.52 125.88 1 1 151.36 169.00 175.76 Ticker Month Endin Symbol 20171229 IBM 20180131 IBM 20180228 IBM 20180329 IBM 20180430 IBM 20180531 IBM 20180629 IBM 20180731 IBM 20180831 IBM 20180928 IBM 20181031 IBM 20181130 IBM 20181231 IBM 20190131 IBM 20190228 IBM 20190331 IBM 20190430 IBM 20190531 IBM 20190630 IBM 20190731 IBM 20190831 IBM 20190930 IBM 20191031 IBM 20191130 IBM 20191231 IBM 20200131 IBM 20200229 IBM 20200331 IBM 20200430 IBM 20200531 IBM 20200630 IBM 20200731 IBM 20200831 IBM 20200930 IBM 20201031 IBM 20201130 IBM 20201231 IBM 20171229 MA 20180131 MA 20180228 MA Company Name INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR INTERNATIONAL BUSINESS MACHS COR MASTERCARD INC MASTERCARD INC MASTERCARD INC Dividend Paid During Month Month 1.50 1.57 1.57 1.57 1.57 1.62 1.62 1.62 1.62 1.63 1.63 1.63 Stock Split During 0.25 Price at end of Montl 153.42 163.70 155.83 153.43 144.96 141.31 139.70 144.93 146.48 151.21 115.43 124.27 113.67 134.42 138.13 141.10 140.27 126.99 137.90 148.24 135.53 145.42 133.73 134.45 134.04 143.73 130.15 110.93 125.56 124.90 120.77 122.94 123.31 121.67 111.66 123.52 125.88 1 1 151.36 169.00 175.76

Answer rating: 100% (QA)

procedure a Arithmetic Average Monthly Return Calculate the monthly return for each month For example for IBM in January 2018 the return would be Price at end of Jan 2018 Price at end of Dec 2017 Pric... View the full answer