Standard deviation of monthly returns of the stock

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Reference no: EM131841905

Using the company Apple Inc. (AQPL), Go to yahoo.com and download five years of the monthly prices of the stock that you have chosen. Also down load 5 years of monthly data for the S&P 500 prices (SPY) for the same period into your Excel spreadsheet.

1. Estimate the monthly return of your chosen stock and the S&P 500. (P1-P0)/P0

2. Estimate average monthly return for both the stock and the S&P500. (Average of 5 years monthly returns of step 1)

3. Estimate the standard deviation of monthly returns of the stock and the S&P500 over the past 5 years.

4. Among these two investments (One stock, and the S&P500) which investment has the highest and the lowest total risk? (Total risk is the standard deviation of returns) Highest and lowest Systematic risk? (Systematic risk is the beta)

Note: you need to do all of this in Excel and attach your Excel file. You may write the summary of your findings in the discussion window and attach the Excel file for support of your answers.

Reference no: EM131841905

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