Question: Using the data shown in the table below, that contains historical monthly prices and dividends (paid at the end of the month) for Ford Motor
Using the data shown in the table below, that contains historical monthly prices and dividends (paid at the end of the month) for Ford Motor Company
stock (Ticker: F) from August 1994 to August 1998, compute the:
a. Average monthly return over this period is % (Round to two decimal places.)
b. Monthly volatility (or standard deviation) over this period. (Round to two decimal places.)
c. 95% confidence interval of the estimate of the average monthly return. (Round to two decimal places.)
| Date | Stock Price | Dividend | Return | 1+Rt | ||
| Aug-94 | $29.250 | $0.000 |
|
| ||
| Sep-94 | $27.750 | $0.000 | -5.13% | 0.949 | ||
| Oct-94 | $29.500 | $0.260 | 7.24% | 1.072 | ||
| Nov-94 | $27.125 | $0.000 | -8.05% | 0.919 | ||
| Dec-94 | $27.875 | $0.000 | 2.76% | 1.028 | ||
| Jan-95 | $25.250 | $0.260 | -8.48% | 0.915 | ||
| Feb-95 | $26.125 | $0.000 | 3.47% | 1.035 | ||
| Mar-95 | $26.875 | $0.000 | 2.87% | 1.029 | ||
| Apr-95 | $27.125 | $0.310 | 2.08% | 1.021 | ||
| May-95 | $29.250 | $0.000 | 7.83% | 1.078 | ||
| Jun-95 | $29.750 | $0.000 | 1.71% | 1.017 | ||
| Jul-95 | $29.000 | $0.310 | -1.48% | 0.985 | ||
| Aug-95 | $30.750 | $0.000 | 6.03% | 1.06 | ||
| Sep-95 | $31.125 | $0.000 | 1.22% | 1.012 | ||
| Oct-95 | $28.750 | $0.350 | -6.51% | 0.935 | ||
| Nov-95 | $28.250 | $0.000 | -1.74% | 0.983 | ||
| Dec-95 | $28.875 | $0.000 | 2.21% | 1.022 | ||
| Jan-96 | $29.500 | $0.350 | 3.38% | 1.034 | ||
| Feb-96 | $31.250 | $0.000 | 5.93% | 1.059 | ||
| Mar-96 | $34.375 | $0.000 | 10.00% | 1.1 | ||
| Apr-96 | $35.875 | $0.350 | 5.38% | 1.054 | ||
| May-96 | $36.500 | $0.000 | 1.74% | 1.017 | ||
| Jun-96 | $32.375 | $0.000 | -11.30% | 0.887 | ||
| Jul-96 | $32.375 | $0.385 | 1.19% | 1.012 | ||
| Aug-96 | $33.500 | $0.000 | 3.47% | 1.035 | ||
| Sep-96 | $31.250 | $0.000 | -6.72% | 0.933 | ||
| Oct-96 | $31.250 | $0.385 | 1.23% | 1.012 | ||
| Nov-96 | $32.750 | $0.000 | 4.80% | 1.048 | ||
| Dec-96 | $32.250 | $0.000 | -1.53% | 0.985 | ||
| Jan-97 | $32.125 | $0.385 | 0.81% | 1.008 | ||
| Feb-97 | $32.875 | $0.000 | 2.33% | 1.023 | ||
| Mar-97 | $31.375 | $0.000 | -4.56% | 0.954 | ||
| Apr-97 | $34.750 | $0.420 | 12.10% | 1.121 | ||
| May-97 | $37.500 | $0.000 | 7.91% | 1.079 | ||
| Jun-97 | $38.000 | $0.000 | 1.33% | 1.013 | ||
| Jul-97 | $40.875 | $0.420 | 8.67% | 1.087 | ||
| Aug-97 | $43.000 | $0.000 | 5.20% | 1.052 | ||
| Sep-97 | $45.125 | $0.000 | 4.94% | 1.049 | ||
| Oct-97 | $43.688 | $0.420 | -2.25% | 0.977 | ||
| Nov-97 | $43.000 | $0.000 | -1.57% | 0.984 | ||
| Dec-97 | $48.563 | $0.000 | 12.94% | 1.129 | ||
| Jan-98 | $51.000 | $0.420 | 5.88% | 1.059 | ||
| Feb-98 | $56.563 | $0.000 | 10.91% | 1.109 | ||
| Mar-98 | $64.813 | $0.000 | 14.59% | 1.146 | ||
| Apr-98 | $45.813 | $23.680 | 7.22% | 1.072 | ||
| May-98 | $51.875 | $0.000 | 13.23% | 1.132 | ||
| Jun-98 | $59.000 | $0.000 | 13.73% | 1.137 | ||
| Jul-98 | $57.000 | $0.420 | -2.68% | 0.973 | ||
| Aug-98 | $44.625 | $0.000 | -21.71% | 0.783 | ||
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