• Obtain at least 5 years of monthly data on prices (60 months).
• Obtain at least 5 years of monthly data on a broad based market indicator (S&P 500, Russell 3000, Wilshire 5000, etc.; do not use the Dow Jones Industrials Average).
• Calculate the average monthly returns (=average function in Excel) , standard deviation of returns (=stdev function) , and correlations of returns (= correl function) , so you’ll have 4 sets for average returns, standard deviation of returns and 6 correlations -- A&B , A&C, and B&C for the companies and A& Market, B& Market, and C and Market.
• Plot prices of stocks & market indicator all vis-à-vis a beginning value of 100 (time series) [ ( P2/P1) x 100 ]
By purchasing this solution you'll be able to access the following files:
Solution.xlsx and Solution.docx.