Calculate the arithmetic average returns of your stock your


Obtain the daily closing prices of your stock for Deere and Company (look it up on yahoo), one of its major competitor and the S&P500 index (ticker = ^GSPC) from 01/01/2005 to 12/30/2016.

a. Calculate the arithmetic average returns of your stock, your competitor and the S&P500 index separately for the 2005-2006, 2007-2009 and 2010-2016 periods.

b. Calculate the standard deviation of the returns of your stock, your competitor and the S&P500 index separately for the 2005-2006, 2007-2009 and 2010-2016 periods.

c. Calculate the average return-to-standard deviation ratio (e.g. reward-to-risk ratio) of your stock, your competitor and the S&P500 index separately for the 2005-2006, 2007-2009 and 2010-2016 periods.

d. Compare and contrast the reward-to-risk ratio of your stock between the 3 periods (2005-2006, 2007-2009 and 2010-2016 periods).

e. Compare and contrast the reward-to-risk ratio of your stock against the ratios of its competitor and against the S&P 500 index in each of the 3 periods (2005-2006, 2007-2009 and 2010-2016 periods).

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Calculate the arithmetic average returns of your stock your
Reference No:- TGS02638044

Expected delivery within 24 Hours