Overview: This activity will help you gather and analyze data relating to returns and standard deviations.
Prompt: Use Yahoo! Finance to get monthly pricing for the S&P 500 ETF (SPY), Coca-Cola, and Netflix for the past five years. Use the provided instructions to complete this activity.
Specifically, the following critical elements must be addressed:
-
Calculate the monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved.
-
Calculate the average monthly return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved.
-
Calculate the annualized returns based on the monthly average return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved.
-
Calculate the standard deviation of monthly returns for S&P 500 ETF (SPY), Coca Cola, and Netflix, supporting each calculation by showing the work involved.
-
Calculate the annualized standard deviation based on standard deviation of monthly returns, supporting each calculation by showing the work involved.
-
Compare the differences in returns and standard deviations of the three sets of data and discuss their investment implications using a cell within the
spreadsheet document.
Rubric
Guidelines for Submission: You must submit a completed Excel spreadsheet that fulfills the requirements outlined in the Module Two Activity Instructions
document.