Priyanka Devagiri

3 years ago   Accountancy

Calculate the monthly returns for each of the stocks: a. Calculate the arithmetic average monthly return for each stock. (3 points) b. Calculate the geometric average monthly return for each stock. (3 points) c. Calculate the monthly return standard deviation for each stock. (3 points) d. Calculate the total percentage return (referred to in the text as the holding period return) for each stock based on purchasing a share at the end of December 2017 and holding it through the end of December 2020. In your calculations assume that any dividends are reinvested immediately in the stock rather than being stuffed under a mattress where they would earn no further returns. (3 points) e. If you constructed a portfolio at the end of December 2017 consisting of 100 shares of each stock and held this portfolio through the end of December 2020 (again, reinvesting all dividends), what would be the total percentage return on the portfolio? What would the portfolio’s geometric average monthly return be?

Dividend Paid During Month Stock Split During Month 1.50 1.57 1.57 1.57 1.57 Ticker Month Endin Symbol 20171229 IBM 20180131

0.25 0.25 175.16 178.27 190.12 196.52 198.00 215.56 222.61 197.67 201.07 188.65 211.13 224.77 0.25 0.33 0.33 0.33 20180329 MA

20181031 TSLA 20181130 TSLA 20181231 TSLA 20190131 TSLA 20190228 TSLA 20190331 TSLA 20190430 TSLA 20190531 TSLA 20190630 TSLA

Deependra Giri

3 years ago

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