1. There are three columns of data: a monthly date, a closing price for an individual stock, and the market close.
   1. Calculate a monthly return series from the closing monthly prices of both the market and the individual security.
   2. Calculate the arithmetic mean return and the standard deviation of the monthly return for both series.
   3. Calculate the geometric mean return for both series.
   4. Calculate the beta of the individual security.
   5. 
      

Date   Closing Price   Market Closing Price   Security Return   Market Return
12/1/2003   43.73   1111.92      
1/1/2004   42.43   1131.13      
2/1/2004   43.05   1144.94      
3/1/2004   43.56   1126.21      
4/1/2004   43.8   1107.3      
5/1/2004   44.47   1120.68      
6/1/2004   43.93   1140.84      
7/1/2004   38.17   1101.72      
8/1/2004   38.91   1104.24      
9/1/2004   35.06   1114.58      
10/1/2004   35.59   1130.2      
11/1/2004   34.63   1173.82      
12/1/2004   36.68   1211.92      
1/1/2005   36.55   1181.27      
2/1/2005   37.7   1203.6      
3/1/2005   36.95   1180.59      
4/1/2005   38.52   1156.85      
5/1/2005   39.57   1191.5      
6/1/2005   37.26   1191.33      
7/1/2005   39.05   1234.18      
8/1/2005   39.26   1220.33      
9/1/2005   38.79   1228.81      
10/1/2005   38.42   1207.01      
11/1/2005   38.59   1249.48      
12/1/2005   36.44   1248.29      
1/1/2006   37.41   1280.08      
2/1/2006   37.94   1280.66      
3/1/2006   38.13   1294.87      
4/1/2006   38.21   1310.61      
5/1/2006   40.09   1270.09      
6/1/2006   39.46   1270.2      
7/1/2006   40.81   1276.66      
8/1/2006   41.1   1303.82      
9/1/2006   41.26   1335.85      
10/1/2006   43.15   1377.94      
11/1/2006   43.54   1400.63      
12/1/2006   44.86   1418.3      
1/1/2007   44.51   1438.24      
2/1/2007   43.4   1406.82      
3/1/2007   44.94   1420.86      
4/1/2007   48.87   1482.37      
5/1/2007   49.62   1530.62      
6/1/2007   49.31   1503.35      
7/1/2007   49.12   1455.27      
8/1/2007   50.69   1473.99      
9/1/2007   54.5   1526.75      
10/1/2007   58.57   1549.38      
11/1/2007   59.22   1481.14      
12/1/2007   58.52   1468.36      
1/1/2008   56.26   1378.55      
2/1/2008   55.74   1330.63      
3/1/2008   58.42   1322.7      
4/1/2008   56.5   1385.59      
5/1/2008   54.95   1400.38      
6/1/2008   50.21   1280      
7/1/2008   49.75   1267.38      
8/1/2008   50.3   1282.83      
9/1/2008   51.45   1164.74      
10/1/2008   42.86   968.75      
11/1/2008   45.99   896.24      
12/1/2008   44.42   903.25      
              

Answer rating: 100% (QA)

Calculate the Security return and Market returns from 01012004 Formula for Monthly Returns P2P11100 P2 Price of current months P1 Price of Previous mo... View the full answer