Question: please explain how you got the answers Data table (Click on the following icon in order to copy its contents into a spreadsheet.) S&P 500
please explain how you got the answers







Data table (Click on the following icon in order to copy its contents into a spreadsheet.) S&P 500 WALMART TARGET MONTH 2013 May June July August September October November December 2014 January February March $1,631 1,606 1,686 1,633 1,682 1,757 1,806 1,848 $74.84 74.49 77.94 72.98 73.96 76.75 81.01 78.69 $69.50 68.86 71.25 63.31 63.98 64.79 63.93 63.27 re de re 1,783 1,859 1,872 74.68 74.70 76.43 56.64 62.54 60.51 g-pl turi Abril 1004 70 71 0176 Data table March April May June July August September October November December 2015 January February March April May 1,872 1,884 1,924 1,960 1,931 2,003 1,972 2,018 2,068 2,059 76.43 79.71 76.77 75.07 73.58 75.50 76.47 76.27 87.54 85.88 60.51 61.75 56.76 57.95 59.59 60.07 62.68 61.82 74.00 75.91 1,995 2,105 2,068 2,086 2,128 84.98 83.93 82.25 78.05 75.86 73.61 76.83 82.07 78.83 79.29 MONTH AND YEAR Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 ANNUALIZED RATE OF RETURN 2.30% 2.58% 474% 2.81% 2.62% 2.72% 2.90% 2.86% 2.71% 2.72% 2.71% 2.56% 2.60% Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 AZ LLA Data table Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 2.71% 2.72% 2.71% 2.56% 2.60% 2.54% 2.42% 2.53% 2.30% 2.33% 2.21% 1.88% 1.98% 2.04% 1.94% 1.97% Data table March April May June July August September October November December 2015 January February March April May 1,872 1,884 1,924 1,960 1,931 2,003 1,972 2,018 2,068 2,059 76.43 79.71 76.77 75.07 73.58 75.50 76.47 76.27 87.54 85.88 60.51 61.75 56.76 57.95 59.59 60.07 62.68 61.82 74.00 75.91 1,995 2,105 2,068 2,086 2,128 84.98 83.93 82.25 78.05 75.86 73.61 76.83 82.07 78.83 79.29 Data table March April May June July August September October November December 2015 January February March April May 1,872 1,884 1,924 1,960 1,931 2,003 1,972 2,018 2,068 2,059 76.43 79.71 76.77 75.07 73.58 75.50 76.47 76.27 87.54 85.88 60.51 61.75 56.76 57.95 59.59 60.07 62.68 61.82 74.00 75.91 1,995 2,105 2,068 2,086 2,128 84.98 83.93 82.25 78.05 75.86 73.61 76.83 82.07 78.83 79.29 Note: Although not absolutely necessary, you are advised to use a computer spreadsheet to work the following problem. a. Use the price data from the table in the popup window, for the Standard & Poor's 500 Index, Walmart, and Target to calculate the holding-period returns for the 24 months from May 2013 through May 2015. b. Calculate the average monthly holding-period returns and the standard deviation of these returns for the S&P 500 Index, Walmart, and Target. c. From the following graphs, describe the nature of the relationship between the stock returns for Walmart and the returns for the S&P 500 Index. d. Assume that you have decided to invest one-half of your money in Walmart and the remainder in Target. Calculate the monthly holding-period returns for your two-stock portfolio, (Hint: The monthly return for the portfolio is the average of the two stocks' monthly returns.) e. The table in the popup window, shows the returns on an annualized basis that were realized from holding long-term government bonds for the same period. Calculate the average monthly holding-period returns and the standard deviations of these returns. (Hint: You will need to convert the annual returns to monthly returns by dividing each return by 12 months.) f. Now assuming that you have decided to invest equal amounts of money in Walmart, Target, and long-term government securities, calculate the monthly returns for your three-asset portfolio. What are the average return and the standard deviation? a. Calculate the monthly holding-period returns (HPR) for the Standard & Poor's 500 Index for the 24 months from May 2013 through May 2015 in the following table. Enter a negative number if the holding-period return is negative. (Round to two decimal places.) HPR MONTH May-13 S&P 500 $1,631 Wun-13 $1.606 % Data table (Click on the following icon in order to copy its contents into a spreadsheet.) S&P 500 WALMART TARGET MONTH 2013 May June July August September October November December 2014 January February March $1,631 1,606 1,686 1,633 1,682 1,757 1,806 1,848 $74.84 74.49 77.94 72.98 73.96 76.75 81.01 78.69 $69.50 68.86 71.25 63.31 63.98 64.79 63.93 63.27 re de re 1,783 1,859 1,872 74.68 74.70 76.43 56.64 62.54 60.51 g-pl turi Abril 1004 70 71 0176 Data table March April May June July August September October November December 2015 January February March April May 1,872 1,884 1,924 1,960 1,931 2,003 1,972 2,018 2,068 2,059 76.43 79.71 76.77 75.07 73.58 75.50 76.47 76.27 87.54 85.88 60.51 61.75 56.76 57.95 59.59 60.07 62.68 61.82 74.00 75.91 1,995 2,105 2,068 2,086 2,128 84.98 83.93 82.25 78.05 75.86 73.61 76.83 82.07 78.83 79.29 MONTH AND YEAR Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 ANNUALIZED RATE OF RETURN 2.30% 2.58% 474% 2.81% 2.62% 2.72% 2.90% 2.86% 2.71% 2.72% 2.71% 2.56% 2.60% Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 AZ LLA Data table Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 2.71% 2.72% 2.71% 2.56% 2.60% 2.54% 2.42% 2.53% 2.30% 2.33% 2.21% 1.88% 1.98% 2.04% 1.94% 1.97% Data table March April May June July August September October November December 2015 January February March April May 1,872 1,884 1,924 1,960 1,931 2,003 1,972 2,018 2,068 2,059 76.43 79.71 76.77 75.07 73.58 75.50 76.47 76.27 87.54 85.88 60.51 61.75 56.76 57.95 59.59 60.07 62.68 61.82 74.00 75.91 1,995 2,105 2,068 2,086 2,128 84.98 83.93 82.25 78.05 75.86 73.61 76.83 82.07 78.83 79.29 Data table March April May June July August September October November December 2015 January February March April May 1,872 1,884 1,924 1,960 1,931 2,003 1,972 2,018 2,068 2,059 76.43 79.71 76.77 75.07 73.58 75.50 76.47 76.27 87.54 85.88 60.51 61.75 56.76 57.95 59.59 60.07 62.68 61.82 74.00 75.91 1,995 2,105 2,068 2,086 2,128 84.98 83.93 82.25 78.05 75.86 73.61 76.83 82.07 78.83 79.29 Note: Although not absolutely necessary, you are advised to use a computer spreadsheet to work the following problem. a. Use the price data from the table in the popup window, for the Standard & Poor's 500 Index, Walmart, and Target to calculate the holding-period returns for the 24 months from May 2013 through May 2015. b. Calculate the average monthly holding-period returns and the standard deviation of these returns for the S&P 500 Index, Walmart, and Target. c. From the following graphs, describe the nature of the relationship between the stock returns for Walmart and the returns for the S&P 500 Index. d. Assume that you have decided to invest one-half of your money in Walmart and the remainder in Target. Calculate the monthly holding-period returns for your two-stock portfolio, (Hint: The monthly return for the portfolio is the average of the two stocks' monthly returns.) e. The table in the popup window, shows the returns on an annualized basis that were realized from holding long-term government bonds for the same period. Calculate the average monthly holding-period returns and the standard deviations of these returns. (Hint: You will need to convert the annual returns to monthly returns by dividing each return by 12 months.) f. Now assuming that you have decided to invest equal amounts of money in Walmart, Target, and long-term government securities, calculate the monthly returns for your three-asset portfolio. What are the average return and the standard deviation? a. Calculate the monthly holding-period returns (HPR) for the Standard & Poor's 500 Index for the 24 months from May 2013 through May 2015 in the following table. Enter a negative number if the holding-period return is negative. (Round to two decimal places.) HPR MONTH May-13 S&P 500 $1,631 Wun-13 $1.606 %
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