Question: Your first assignment is to create a portfolio for a client by selecting two stocks on the market. Complete the below table on Nasdaq and
Your first assignment is to create a portfolio for a client by selecting two stocks on the market.
- Complete the below table on Nasdaq and collect the data on Dec 31 each year (or the last trading day in that year):
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| NIKE, Inc. (NKE) | Lululemon Athletica Inc. (LULU) |
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| Year | Stock Price | Dividend Paid in the last quarter of the year | Stock price + dividend | Annual Change % | Stock Price | Dividend Paid in the last quarter of the year | Stock price plus dividend | Annual Change % | Nasdaq composite includes dividends stock price |
| 2019 | 101.31 | 0.245 | 101.555 | 36.65% | 231.67 | 0 | 231.67 | 90.50% |
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| 2018 | 74.14 | 0.22 | 74.36 | 18.53% | 121.61 | 0 | 121.61 | 54.74% |
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| 2017 | 62.55 | 0.18 | 62.73 | 23.06% | 78.59 | 0 | 78.59 | 20.93% |
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| 2016 | 50.83 | 0.18 | 51.01 | -18.67% | 64.99 | 0 | 64.99 | 23.86% |
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| 2015 | 62.5 | 0.16 | 62.66 | 30.01% | 52.47 | 0 | 52.47 | -5.95% |
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| 2014 | 48.07 | 0.14 | 48.21 | 22.27% | 55.79 | 0 | 55.79 | -5.49% |
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Use the data you have collected to calculate annual returns for Company 1, Company 2, and the Market Index, and then calculate average returns over the five-year period. Give comments on your calculation results. Which stock has a higher return?
Calculate the standard deviation of the returns for Company 1, Company 2, and the Market Index.
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