Calculate the total return for the five-year holding period

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Problem - Suppose that on July 25, 2014 you purchased shares in Tesla Inc. (Nasdaq: TSLA). It is now five years later and you decide to evaluate your holdings to see if you have done well with this investment. The table below shows the end of July market prices of TSLA.

TSLA Stock Prices

Date

Price

2014

223.57

2015

265.41

2016

229.51

2017

343.85

2018

306.65

2019

228.04

Required -

a. Add a new column and use a formula to calculate your rate of return for each year. Format the data as percentages with two decimal places.

b. Add another column and use a formula to calculate the cumulative total return from July 2014 to the end of July of each year. Format the data as above.

c. Calculate the total return for the five-year holding period. What is the compound average annual growth rate (CAGR) of your investment?

d. Create a Line chart showing the stock price from July 2014 to July 2019. Be sure to title the chart and label the axes. Now, create an XY Scatter chart of the same data. What are the differences between these types of charts? Which type of chart is more appropriate for this data?

e. Experiment with the formatting possibilities of the chart. For example, you might try changing it to a 3-D Line chart and fill the plot area with a marble background. Is there any reason to use this type of chart to display this data? Do the "enhancements" help you to understand the data?

Reference no: EM132712354

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