Congratulations!! You have been just hired as an equity analyst. You are asked to analyze the Ford
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Question:
Congratulations!! You have been just hired as an equity analyst. You are asked to analyze the Ford and Walmart historical data. You will find historical data for Ford, Walmart, Market Index and T-bills in the Excel Spreadsheet that is provided to you.
A. Use Excel to calculate the following measures:
- Calculate the average return for Ford, Walmart, Market Index and T-bills (proxy for risk free rate
Total rates of return (decimal) | ||||
Month | Ford | Walmart | Market Index | T-bill rate |
Jan-07 | 0.0826 | 0.0327 | 0.0194 | 0.0042 |
Feb-07 | -0.0271 | 0.0130 | -0.0140 | 0.0042 |
Mar-07 | -0.0025 | -0.0236 | 0.0129 | 0.0041 |
Apr-07 | 0.0190 | 0.0207 | 0.0398 | 0.0041 |
May-07 | 0.0373 | -0.0021 | 0.0389 | 0.0039 |
Jun-07 | 0.1295 | 0.0107 | -0.0148 | 0.0038 |
Jul-07 | -0.0966 | -0.0449 | -0.0318 | 0.0040 |
Aug-07 | -0.0823 | -0.0457 | 0.0116 | 0.0035 |
Sep-07 | 0.0871 | 0.0005 | 0.0408 | 0.0032 |
Oct-07 | 0.0448 | 0.0357 | 0.0258 | 0.0033 |
Nov-07 | -0.1533 | 0.0595 | -0.0493 | 0.0027 |
Dec-07 | -0.1039 | -0.0031 | -0.0044 | 0.0025 |
Jan-08 | -0.0134 | 0.0675 | -0.0621 | 0.0023 |
Feb-08 | -0.0166 | -0.0227 | -0.0217 | 0.0018 |
Mar-08 | -0.1240 | 0.0671 | -0.0104 | 0.0011 |
Apr-08 | 0.4441 | 0.1006 | 0.0511 | 0.0011 |
May-08 | -0.1768 | 0.0000 | 0.0238 | 0.0014 |
Jun-08 | -0.2926 | -0.0267 | -0.0784 | 0.0016 |
Jul-08 | -0.0021 | 0.0431 | -0.0133 | 0.0014 |
Aug-08 | -0.0708 | 0.0117 | 0.0106 | 0.0014 |
Sep-08 | 0.1659 | 0.0139 | -0.0980 | 0.0009 |
Oct-08 | -0.5788 | -0.0681 | -0.1846 | 0.0006 |
Nov-08 | 0.2283 | 0.0013 | -0.0846 | 0.0002 |
Dec-08 | -0.1487 | 0.0075 | 0.0221 | 0.0000 |
Jan-09 | -0.1834 | -0.1595 | -0.0773 | 0.0001 |
Feb-09 | 0.0695 | 0.0450 | -0.1002 | 0.0003 |
Mar-09 | 0.3150 | 0.0636 | 0.0867 | 0.0002 |
Apr-09 | 1.2738 | -0.0326 | 0.1094 | 0.0001 |
May-09 | -0.0385 | -0.0077 | 0.0678 | 0.0002 |
Jun-09 | 0.0557 | -0.0261 | -0.0031 | 0.0002 |
Jul-09 | 0.3180 | 0.0297 | 0.0817 | 0.0002 |
Aug-09 | -0.0500 | 0.0253 | 0.0315 | 0.0001 |
Sep-09 | -0.0513 | -0.0350 | 0.0452 | 0.0001 |
Oct-09 | -0.0291 | 0.0120 | -0.0280 | 0.0001 |
Nov-09 | 0.2700 | 0.0980 | 0.0571 | 0.0000 |
Dec-09 | 0.1249 | -0.0152 | 0.0284 | 0.0000 |
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