Module Two Activity Instructions

Instructions

$1.$ Open a new Excel workbook in which you can aggregate all the data and make the necessary

calculations.

$2.$ Go to Platform page of the ValueInvesting.io website.

$3.$ Complete the following steps for KO$,$ NFLX$,$ and SPY:

A$.$ At the top left of the screen, in the Search Stick$/$Company search bar, enter the

company stock ticker.

i$.$ For Coca$-$Cola, search KO$.$ Click the linked title Coca$-$Cola Co$.$ You may get a pop$-$

up message that states, $$You$$ve reached your free view limit$.$ If so$,$ click the Re$-$

load this page button to refresh the page. View the Price vs Fair Value on the

right side of the page.

ii$.$ For Netflix, search NFLX$.$ Click the linked title Netflix Inc. Click the Re$-$load this

page button to refresh the page as needed. View the Price vs Fair Value on the

right side of the page.

iii. For SPY$,$ review the SPY yahoo!finance page. Market price is $$Previous Close$$

and fair value price is $$NAV$.$

$4.$ Open an Excel spreadsheet.

$5.$ Create a table.

A$.$ Title the table Annual Total Return.

B$.$ Create four columns. From left to right, the columns should be titled Year, KO$,$ NFLX$,$

SPY$.$

C$.$ In the Year column, enter the past $10$ years in ascending order.

$6.$ Below the table, skip one row. Then add a new table with two rows with the following titles:

A$.$ AVG $($for average annual return$)$

B$.$ SD $($for standard deviation$)$

$7.$ Copy data from Morningstar to the Excel table.

A$.$ For KO$,$ NFLX$,$ and SPY$,$ enter the return data for each of the past $10$ years next to the

corresponding year in the table.

B$.$ Calculate the following:

i$.$ The average annual return for the past $10$ years

ii$.$ The standard deviation for the past $10$ years

C$.$ Enter the average annual return for each stock into the row of the lower table titled

AVG.

D$.$ Enter the standard deviation for each stock into the row of the lower table titled SD$.$

Statistic Excel Functions

Average Annual Return: AVERAGE

Annual Standard Deviation: STDEV.S

Use the Module Two Activity Instructions to complete this activity.

Specifically, the following critical elements must be addressed:

Calculate the standard deviation for the $10-$year period for the S&P $500$ ETF SPY$,$ Coca$-$Cola, and Netflix. Support each calculation by showing the work involved.

Calculate the annualized return for the $10-$year period. Support each calculation by showing the work involved.

Compare the differences in returns and standard deviations of the three sets of data. Based on your analysis, explain which one of the three investment products you would choose to invest in and why.

What to Submit

You must submit a completed Excel spreadsheet that fulfills the requirements outlined in the Module Two Activity Instructions document.