# Expected return, standard deviation, and capital asset pricing model) The following are the end-of-month prices for both

## Question:

Expected return, standard deviation, and capital asset pricing model) The following are the end-of-month prices for both the Standard & Poor’s 500 Index and Nike’s common stock.

a. Using the data here, calculate the holding-period returns for each of the months.

b. Calculate the average monthly return and the standard deviation for both the S&P 500 and Nike.

c. Develop a graph that shows the relationship between the Nike stock returns and the S&P 500 Index. (Show the Nike returns on the vertical axis and the S&P 500 Index returns on the horizontal axis as done in Figure 6-5.) d. From your graph, describe the nature of the relationship between Nike stock returns and the returns for the S&P 500 Index.

**Related Book For**

## Statistics for Business and Economics

ISBN: 978-0134506593

13th edition

Authors: James T. McClave, P. George Benson, Terry Sincich