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FIN5080 Quiz 4




Question;1.;This;assignment will require you to analyze time series of monthly returns. Start by;retrieving MONTHLY data for the period of July 31, 2009 ? July 31, 2014 from;Yahoo Finance website (;for;? Best Buy (ticker =;BBY) (for Students with last names starting from A-H)? Ford (ticker = F) (for Students with last names;starting from I-R);? IBM;(ticker = IBM) (for Students with last names starting from S-Z);? (if you;use the wrong company, no points will be allotted for this question);Instructions for downloading the data from Yahoo!;To obtain the monthly data, click on ?Historical;Prices? on the left panel. Select Date Range. Make sure Monthly is;selected and then click on ?Get Prices?. Scroll down and click on ?Download to;Spreadsheet?.;Instructions for sorting the data by DATE;Re-sort the data so that the most previous date;is at the bottom of your spreadsheet (i.e. highlight DATE columns and click on;SORT, make sure ?expand the selection? is selected, then click on SORT and sort;by Date and order by ?Oldest to Newest?).;Calculating Returns;Use the ?Adjusted Close? column to obtain returns;for each period. Remember that the Adjusted Close column has already adjusted;the prices for dividends and stock splits so you do not have to adjust for it;again. Just use the adjusted close column to obtain the returns.;Rt;=Pt;?1Pt;?1;Calculate the following;a. Average Monthly returns for Ford or IBM or BBY;(based on your last name).;b.;Standard;Deviation and variance of monthly returns for Ford or IBM or BBY (based on your;last name).;2.;On 30 January 2002, you bought one share of ABC;for $80. On 30 January 2003, the stock split 2 for 1. On 31st July 2003, the;stock splits 2 for 1 and on 31st January 2004, the;stock price is $25.;a. Calculate the cumulative adjustment factor;b. Calculate the return since you bought the stock.;3. A stock has the following year-end prices and;dividends;Year;Price;Dividends;1;$43.12;-;2;49.07;$0.55;Page 1 of 2;FIN 5080;Instructor: Dr.;Palkar;Quiz 4 EC;3;51.19;0.60;4;47.24;0.63;5;56.09;0.72;6;67.21;0.81;Calculate;a. Returns for each year;b. Arithmetic average returns;c.;Geometric;average returns.;4. Below is the stock price and;split data for ABC Company.;Date;Closing Price;Stock Splits;2000;88.45;2001;92.67;5 for 2;2002;113.87;2003;112;2 for 1;2004;115.45;2005;116.87;3 for 1;2006;121.76;1.5 for 1;2007;118.9;2008;98.66;3 for 2;2009;92.56;a.;Calculate;the stock-adjusted returns for each year and its average mean, variance, and;standard deviation.;b. If you bought 200 shares of this stock in the;beginning of 2000, how many shares would you have at the end of 2009?


Paper#49006 | Written in 18-Jul-2015

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