1. Assume you deposit $ 500 in a saving account at the beginning of each month. The bank pays an effective annual interest rate of 2 percent. How much money do you expect to have on your account after eight years if the terms remain unchanged?
2. Obtain a beta estimate for PetSmart. What does it mean? Examine and compare the annual total returns and average return of your stock with that of the S&P500’s returns. Did it follow the Beta estimate? It would be helpful to illustrate the returns of the company’s stock and the market.
3. Assuming that you bought your stock from PetSmart at the beginning of 2017 (January 2nd), what is the Year-To-Date return on your stock (pick a recent trading day). How does it compare to the YTD for the S&P 500?