GROUP ASSIGNMENT COVER SHEET

INVESTMENT ANALYSIS BFI206

May 2020

(1) Name: Lai Hui June Student ID: 1001850882

(2) Name: Ngow Yi Ling Student ID: 1001849887
(3) Name: Lee Yih Hui Student ID: 1001955819
(4) Name: Chong Khee Xin Student ID: 1001850437
(5) Name: Lau Kah Xin Student ID: 1001852984
(6) Name: Chuan Yee Leng Student ID: 1001849344
(7) Name: Hee Suet Yee Student ID: 1001746625
(8) Name: Kalvin Wong Kheang Heang Student ID: 1001852930

Lecturer’s Name: Assistant Professor Dr. Liew Chee Yoong

Date ADM BA CAT DE GIS GOOG HSY IBM JPM MSFT PG WMT
 53.3075 45.0018 19.9603 248.025 72.6586 37.1760 22.8174 42.9249
5/1/2007 25.3733 72.37566 5 6 9 3 37.68753 4 8 9 7 34.91261
53.1176 45.1027 19.0412 260.374 72.0177 34.7517 21.9814
6/1/2007 24.0386 69.44624 2 3 5 1 36.38104 5 1 2 41.3309 35.45045
45.3139 18.1286 254.047 75.7127 31.5670 21.6233 41.7834
7/1/2007 24.4091 74.69661 53.4568 2 1 8 33.13247 2 3 9 5 33.85882
24.4817 51.6161 51.1992 18.3353 32.1816 21.4294 44.3614
8/1/2007 4 69.83623 7 3 5 256.663 33.41996 79.8456 4 6 7 32.14932
24.1118 53.4282 55.8502 19.0342 282.575 80.8901 33.1213 22.0509 47.7780
9/1/2007 8 76.08118 3 9 4 8 33.57517 1 7 8 8 32.32633
10/1/200 50.8259 18.9423 352.179 79.7365 33.9743 27.5525
7 26.0799 71.44343 6 58.7016 7 9 31.1878 3 5 1 47.2211 33.48164
11/1/200 26.4953 49.2095 65.1060 345.206 33.2446 25.1497 50.5137
7 7 67.05927 5 9 19.8712 1 28.87277 72.2243 7 9 5 35.4738
12/1/200 33.9499 49.6612 70.5783 18.8305 344.448 74.4927 31.8090 26.7349 50.1178
7 2 63.60595 6 4 6 9 28.71818 1 7 1 5 35.19978
32.1584 48.5867 66.5437 18.0112 281.096 73.8104 34.5418 24.4819 44.6568
1/1/2008 7 60.49324 2 7 7 4 26.36389 6 1 6 7 37.74643
32.9774 49.7826 64.7578 18.6247 234.710 78.4619 29.8830 20.4266 45.4036
2/1/2008 1 60.20963 9 4 2 3 27.02716 5 4 7 7 36.89092
30.1857 61.1327 219.412 79.6473 31.5738 21.3956 48.0724
3/1/2008 3 54.35226 53.8848 2 19.9187 6 27.67955 6 3 4 5 39.18962
32.3125 56.3556 64.0896 20.0916 286.072 83.4934 35.0289 21.5011 46.0005
4/1/2008 3 62.01874 8 8 7 7 27.46646 8 3 8 5 43.33765
5/1/2008 29.1150 60.49127 57.1390 62.0085 21.1620 291.806 28.79643 89.5323 31.8682 21.3504 45.5740 43.15826
 1 7 1 5 2 9 5 6
24.8259 51.0407 54.9873 20.3483 262.227 82.3275
6/1/2008 9 48.25458 5 8 8 1 24.28083 5 25.4279 20.8161 41.9585 42.18441
48.0676 53.6899 21.5605 235.990 88.8912 30.1117 19.4616 45.1807
7/1/2008 21.0598 44.86972 3 6 1 4 27.23629 4 9 5 8 44.00088
18.7279 49.1972 54.0037 22.3164 84.5501 28.8452 20.6496 48.4419
8/1/2008 9 48.13709 1 2 5 230.78 26.73261 9 7 3 6 44.33865
16.1993 41.4555 37.8798 23.1729 199.512 81.5534 34.9980 20.2761
9/1/2008 4 42.36888 9 9 6 2 29.52026 7 1 7 48.3864 45.13547
10/1/200 26.5705 29.6517 22.8424 64.8258 30.9136 16.9639 44.8107
8 15.3269 38.7267 2 9 9 179.009 27.80311 1 6 1 1 42.06062
11/1/200 20.2436 28.7987 26.7681 21.4390 56.8977 23.9097 15.3609 44.9644
8 4 31.49408 3 2 4 145.933 26.87733 9 7 7 6 42.11338
12/1/200 21.4243 31.3842 29.4672 20.6177 153.250 59.0108 14.8684 43.1966
8 8 31.76057 3 2 3 6 26.17436 5 23.8116 6 4 42.24903
20.3468 21.6745 26.9101 20.0747 168.632 64.2626 19.2652 13.0787
1/1/2009 5 31.4926 8 6 1 9 28.08809 9 7 4 38.0818 35.66511
19.8117 17.4770 21.2941 17.9421 168.363 64.5291 17.4669 12.3521 33.8947
2/1/2009 9 23.40173 2 9 2 9 25.38325 1 4 4 8 37.26975
20.7457 19.8560 25.4616 17.0532 173.380 20.3182 14.1464 33.1348
3/1/2009 9 26.75019 5 2 2 1 26.40909 68.3064 1 2 5 39.43449
18.3859 25.2674 32.2117 17.3301 197.245 72.7619 25.2257 15.6018 34.7884
4/1/2009 4 30.11088 6 4 5 7 27.46545 6 7 7 3 38.36295
20.5516 25.5066 17.6470 74.9262 16.0870
5/1/2009 2 33.71967 7 33.9371 2 207.836 26.76628 5 28.2572 2 36.8633 37.86057
 20.1044 23.7659 31.1890 19.3158 210.007 73.9994 26.1206 18.4211 36.2671
6/1/2009 4 32.26693 5 3 6 8 27.58908 7 9 1 2 37.06987
31.6927 34.3764 20.3123 220.697 83.5736 29.5973 18.2273 39.3970
7/1/2009 22.6203 32.57821 4 7 4 8 30.61623 2 2 7 2 38.17187
21.6515 33.0014 34.2664 20.7579 83.6586 33.3295 19.1030 38.7103
8/1/2009 1 37.71055 7 3 7 229.973 30.06444 5 6 8 5 38.92949
22.0585 37.3861 246.999 85.1595 33.6056 20.0443 41.4360
9/1/2009 6 41.50664 2 33.732 22.374 2 30.00803 5 6 8 4 37.77338
10/1/200 22.7379 40.1028 36.0285 22.9091 85.8715 32.0335 21.6108 41.4932
9 8 36.63928 6 7 9 267.059 29.18176 4 1 3 6 38.22736
11/1/200 23.2588 42.8363 42.3246 23.8044 290.411 89.9582 22.9201 44.9454
9 8 40.17291 1 9 5 5 27.31302 8 32.6251 1 5 41.97469
12/1/200 23.7404 41.8092 42.7834 24.7881 308.832 93.6160 23.8589 43.7055
9 3 41.85679 6 4 3 4 27.86065 3 31.9955 9 8 41.12827
22.7243 38.3245 39.7076 24.9631 263.980 87.5299 29.8992 22.0586 44.3687
1/1/2010 9 46.85981 4 2 6 5 28.35886 2 9 1 8 41.32021
22.2618 42.1388 45.5504 25.3842 262.416 90.9412 32.2645 22.4421 45.9433
2/1/2010 6 48.83937 2 8 4 4 30.95109 9 3 7 8 41.81516
22.0240 46.4228 47.2675 24.9541 282.501 92.1310 34.4016 45.9361
3/1/2010 4 56.53002 7 6 8 1 33.59587 7 8 23.0347 1 42.99838
21.2924 50.2932 47.7746 261.868 92.6698 32.7334 24.0177 45.1302
4/1/2010 5 56.38989 9 2 25.0846 4 36.89189 2 8 5 3 41.71642
45.1590 46.0655 25.2859 241.908 89.9831 30.4612 20.2900 44.6945
5/1/2010 19.2577 49.9669 9 4 6 3 36.7271 4 6 4 8 39.32108
6/1/2010 19.7860 49.13711 44.6462 44.4682 25.2185 221.644 37.8738 89.1591 28.1755 18.1775 43.8824 37.60175
 8 5 7 2 2 4 9
51.8407 53.5220 24.2813 241.519 92.7115 30.9999 44.7457
7/1/2010 20.9662 53.35782 9 8 3 7 37.13892 9 9 20.3895 9 40.04231
23.6099 48.7518 50.7849 25.8716 224.169 28.0213 18.5409 43.9971
8/1/2010 6 47.86855 5 7 9 8 36.72012 88.9064 8 3 9 39.22097
24.5833 58.8673 56.0103 26.1435 261.913 97.3361 29.3315 19.4499 44.2184
9/1/2010 1 52.42152 3 7 8 3 37.8589 1 1 3 1 42.10924
10/1/201 25.6615 58.8074 61.9026 26.8733 305.704 104.200 29.0001 21.1812 46.8728
0 2 55.65158 8 9 5 1 39.3704 6 3 7 4 42.62065
11/1/201 22.3267 63.6452 60.2100 25.4694 276.817 102.647 28.8600 20.0614 45.3755
0 6 50.23927 5 3 4 4 37.23043 8 6 6 2 42.55771
12/1/201 23.2819 70.4611 66.9403 25.6568 106.966 32.7337 22.3022 47.7977
0 1 51.72443 7 4 7 295.876 37.76867 8 8 8 1 42.43183
25.2865 72.9814 73.5758 25.0729 299.059 118.074 34.6783 22.1584 46.9061
1/1/2011 6 55.06916 1 5 5 1 37.4002 6 6 4 1 44.35956
77.7991 72.9688 26.9805 305.554 117.987 36.0701 47.1938
2/1/2011 28.7773 57.07444 9 2 7 7 41.91 1 4 21.2395 1 41.12376
27.9939 78.4242 26.5519 292.284 119.325 35.6143 20.4085 46.1084
3/1/2011 3 58.93663 84.1634 6 6 5 43.83017 1 5 2 6 41.17914
87.2321 79.2151 28.0266 271.034 124.820 35.2512 20.8345 48.5785
4/1/2011 28.7791 63.60023 2 8 7 1 46.53982 4 7 3 6 43.80208
25.1953 80.3015 69.9368 29.1146 263.522 33.5860 20.1030 50.5663
5/1/2011 1 62.20514 1 7 8 2 44.94307 123.613 2 7 5 43.99328
23.5561 80.8024 27.2478 252.244 126.091 31.7995 21.0358 47.9776
6/1/2011 5 59.24788 1 66.9876 9 5 46.12977 6 4 2 5 42.61627
 23.7358 74.9809 64.1122 27.3430 300.717 133.662 31.4189 22.1685 46.4078
7/1/2011 5 56.47504 3 7 5 8 45.79707 2 3 2 3 42.27143
22.2513 69.3601 65.9986 27.9818 126.356 29.3534 21.5212 48.4543
8/1/2011 8 53.58195 5 3 2 269.47 47.59035 2 1 6 8 42.65638
19.4942 56.2807 52.7286 28.4099 256.558 129.091 20.2648 48.0739
9/1/2011 7 48.82195 9 9 2 4 48.36573 5 23.539 5 3 41.92296
10/1/201 22.7393 71.9973 62.3488 28.4394 295.213 136.296 27.1651 21.6815 48.6902
1 8 53.08209 5 3 5 5 46.72469 5 9 2 8 45.81638
11/1/201 23.6665 75.0170 65.1007 29.7259 298.575 138.784 24.4163 20.8266 49.5321
1 7 55.42191 2 2 1 9 47.09208 3 4 4 5 47.57728
12/1/201 22.6050 69.4375 63.5399 30.0681 136.288 26.2138 21.2951 51.1737
1 8 59.55916 2 4 8 321.744 50.75064 5 6 8 8 48.27198
22.6287 83.6315 71.1406 29.6366 288.971 142.751 29.4068 24.2236 48.3584
1/1/2012 9 60.23309 8 3 2 9 50.17561 6 3 8 9 49.87409
24.6600 87.9239 68.4816 28.7207 307.970 145.812 31.1589 26.0365
2/1/2012 8 60.8583 2 4 5 6 49.86345 7 9 6 52.2861 48.02089
25.1660 82.0038 66.8053 29.5754 319.422 155.249 36.5109 26.6373 51.9690
3/1/2012 4 60.74278 1 4 1 7 50.69846 8 6 4 8 49.74405
24.5062 68.3927 29.1555 301.295 154.081 34.1287 26.4391 49.2086
4/1/2012 9 62.72751 79.1169 5 7 7 55.39384 6 9 7 5 48.2032
2. Convert these prices to monthly returns as the percentage change in the monthly prices. (Hint: Create a separate worksheet within
the Excel file). Note that to compute a return for each month, you need a beginning and ending price, so you will not be able to
compute the return for the first month.

Beginningprice ¿
Endingprice−Beginningprice+Dividendpaid¿ ¿
Holding Period Return = ¿
Date ADM BA CAT DE GIS GOOG HSY IBM JPM MSFT PG WMT
1/05/200
7
1/06/200
7 -4.81% -3.56% 0.32% 0.71% -3.63% 4.98% -2.75% -0.33% -5.61% -3.23% -2.90% 2.17%
1/07/200
7 2.02% 8.06% 1.32% 0.96% -3.77% -2.43% -8.19% 5.69% -8.19% -1.17% 1.94% -3.87%
1/08/200
7 0.77% -6.04% -2.77% 13.47% 2.22% 1.03% 1.68% 5.99% 3.15% -0.43% 7.01% -4.40%
1/09/200
7 -1.04% 9.44% 4.21% 9.51% 4.88% 10.10% 1.35% 1.81% 4.10% 3.37% 8.49% 1.23%
1/10/200
7 8.64% -5.64% -4.20% 5.50% 0.54% 24.63% -6.22% -0.93% 3.72% 25.40% -0.43% 4.25%
1/11/200 2.03% -5.65% -2.47% 11.29% 5.93% -1.98% -6.47% -8.92% -1.03% -8.36% 7.71% 6.61%
 7
1/12/200
7 28.57% -4.63% 1.65% 8.74% -4.26% -0.22% 0.49% 3.69% -3.18% 6.74% -0.09% -0.15%
1/01/200
8 -4.94% -4.34% -1.44% -5.40% -3.32% -18.39% -7.16% -0.38% 9.79% -8.02% -10.20% 7.86%
1/02/200
8 2.90% 0.11% 3.20% -2.35% 4.49% -16.50% 3.64% 6.84% -12.39% -16.12% 2.46% -1.68%
1/03/200
8 -8.07% -9.06% 8.96% -5.26% 7.99% -6.52% 3.51% 2.02% 6.93% 5.28% 6.65% 6.83%
1/04/200
8 7.48% 14.84% 5.25% 5.20% 1.85% 30.38% 0.30% 5.33% 12.15% 1.01% -3.58% 11.19%
1/05/200
8 -9.49% -1.82% 2.03% -2.90% 6.32% 2.00% 5.93% 7.71% -7.94% -0.19% -0.06% 0.13%
1/06/200
8 -14.28% -19.57% -10.04% -10.97% -2.90% -10.14% -14.65% -7.49% -19.02% -1.99% -7.06% -1.71%
1/07/200
8 -14.65% -6.19% -5.12% -1.96% 6.94% -10.01% 13.40% 8.58% 19.91% -5.98% 8.63% 4.87%
1/08/200
8 -10.46% 8.17% 3.22% 0.99% 4.50% -2.21% -0.76% -4.32% -2.94% 6.67% 8.10% 1.31%
1/09/200 -12.81% -11.15% -14.88% -29.45% 4.80% -13.55% 11.54% -2.95% 22.65% -1.28% 0.71% 2.33%
 8
1/10/200
8 -4.58% -7.65% -34.89% -21.06% -0.50% -10.28% -4.81% -19.90% -10.58% -15.79% -6.56% -6.29%
1/11/200
8 32.93% -17.64% 9.97% -8.88% -5.20% -18.48% -2.26% -11.46% -21.43% -8.80% 1.24% 0.69%
1/12/200
8 6.47% 2.12% 10.44% 11.02% -2.83% 5.01% -1.51% 4.59% 1.18% -2.36% -3.04% 0.89%
1/01/200
9 -4.42% 0.42% -29.60% -7.83% -1.59% 10.04% 8.45% 9.75% -17.50% -11.16% -10.91% -15.02%
1/02/200
9 -1.99% -24.42% -17.43% -19.94% -9.55% -0.16% -8.57% 1.19% -7.36% -4.56% -9.94% 5.17%
1/03/200
9 5.42% 16.10% 16.02% 20.74% -3.76% 2.98% 5.21% 6.63% 18.50% 15.58% -1.06% 6.45%
1/04/200
9 -10.70% 14.13% 29.37% 27.49% 2.88% 13.76% 5.13% 7.25% 26.02% 11.21% 6.20% -2.03%
1/05/200
9 12.54% 13.38% 2.61% 6.13% 3.07% 5.37% -1.46% 3.66% 12.22% 3.94% 7.23% -0.60%
1/06/200
9 -1.49% -3.06% -5.18% -7.36% 10.68% 1.04% 4.19% -0.50% -7.38% 15.32% -0.42% -1.37%
1/07/200 13.21% 2.27% 35.12% 11.12% 6.27% 5.09% 12.05% 13.68% 13.50% -0.35% 9.84% 3.71%
 9
1/08/200
9 -3.66% 17.04% 5.45% 0.49% 3.35% 4.20% -0.83% 0.76% 12.78% 5.52% -0.63% 2.70%
1/09/200
9 2.53% 11.18% 14.56% -0.74% 8.92% 7.40% 0.80% 2.45% 0.98% 5.61% 8.18% -2.27%
1/10/200
9 3.71% -10.71% 8.39% 7.64% 3.44% 8.12% -1.76% 1.48% -4.53% 8.46% 1.20% 1.92%
1/11/200
9 2.91% 10.79% 7.86% 18.25% 4.93% 8.74% -5.38% 5.40% 2.00% 6.66% 9.38% 10.52%
1/12/200
9 2.67% 5.24% -1.42% 1.75% 5.12% 6.34% 3.09% 4.68% -1.78% 4.66% -1.78% -1.37%
1/01/201
0 -3.69% 12.96% -7.33% -6.53% 1.65% -14.52% 2.86% -5.91% -6.40% -7.00% 2.52% 1.13%
1/02/201
0 -1.42% 5.12% 11.05% 15.42% 2.67% -0.59% 10.19% 4.53% 8.08% 2.33% 4.54% 1.86%
1/03/201
0 -0.39% 16.61% 11.16% 4.38% -0.73% 7.65% 9.58% 1.91% 6.78% 3.22% 0.94% 3.48%
1/04/201
0 -2.64% 0.50% 9.24% 1.67% 1.50% -7.30% 10.76% 1.18% -4.70% 4.83% -0.80% -2.28%
1/05/201
0 -8.85% -10.65% -9.37% -2.99% 1.78% -7.62% 0.42% -2.31% -6.79% -14.98% 0.10% -5.02%
1/06/201
0 3.52% -0.82% -0.21% -2.86% 0.70% -8.38% 3.99% -0.19% -7.34% -9.77% -0.74% -3.60%
1/07/201
0 6.72% 9.44% 17.06% 21.03% -2.74% 8.97% -1.10% 4.71% 10.20% 12.88% 3.07% 7.30%
1/08/201
0 13.33% -9.50% -5.11% -4.55% 7.70% -7.18% -0.27% -3.40% -9.45% -8.43% -0.60% -1.30%
1/09/201
0 4.76% 10.39% 21.65% 10.88% 2.13% 16.84% 3.97% 10.21% 4.85% 5.60% 1.60% 8.14%
1/10/201
0 5.00% 6.96% 0.65% 11.06% 3.86% 16.72% 4.84% 7.72% -0.96% 9.57% 7.09% 1.93%
1/11/201
0 -12.41% -8.97% 8.97% -2.25% -4.18% -9.45% -4.62% -0.87% -0.31% -4.67% -2.17% 0.56%
1/12/201
0 4.95% 3.79% 11.40% 11.68% 1.84% 6.88% 2.31% 4.84% 13.60% 11.97% 6.40% 0.42%
1/01/201
1 9.25% 7.28% 4.20% 10.44% -1.18% 1.08% -0.13% 10.99% 6.09% 0.07% -0.86% 5.26%
1/02/201
1 14.40% 4.40% 7.20% -0.35% 8.73% 2.17% 12.91% 0.48% 4.16% -3.43% 1.64% -6.61%
1/03/201
1 -2.17% 4.00% 8.75% 7.96% -0.55% -4.34% 5.40% 1.68% -1.13% -3.16% -1.28% 0.87%
1/04/201
1 3.38% 8.63% 4.17% 1.45% 6.61% -7.27% 6.97% 5.15% -0.88% 2.87% 6.40% 7.26%
1/05/201
1 -11.90% -1.53% -7.44% -11.27% 4.88% -2.77% -2.69% -0.45% -4.01% -2.74% 5.17% 1.27%
1/06/201
1 -5.87% -4.08% 1.17% -3.72% -5.45% -4.28% 3.41% 2.61% -4.57% 5.44% -4.08% -2.30%
1/07/201
1 1.44% -3.97% -6.66% -3.68% 1.38% 19.22% 0.03% 6.60% -0.41% 6.15% -2.18% 0.05%
1/08/201
1 -5.58% -4.38% -6.88% 3.58% 3.45% -10.39% 4.67% -4.90% -5.78% -2.20% 5.54% 1.77%
1/09/201
1 -11.67% -8.10% -18.19% -19.49% 2.62% -4.79% 2.35% 2.76% -18.96% -5.09% 0.30% -0.86%
1/10/201
1 17.47% 9.59% 28.74% 19.02% 1.18% 15.07% -2.68% 6.16% 16.47% 7.78% 2.37% 10.16%
 1/11/201
1 4.78% 5.20% 4.83% 5.07% 5.60% 1.14% 1.52% 2.38% -9.20% -3.20% 2.81% 4.64%
1/12/201
1 -3.75% 8.22% -6.82% -1.77% 2.18% 7.76% 8.50% -1.26% 8.39% 3.21% 4.37% 2.23%
1/01/201
2 0.88% 1.84% 21.10% 12.61% -0.42% -10.19% -0.45% 5.29% 13.13% 14.69% -4.48% 4.08%
1/02/201
2 9.75% 1.74% 5.68% -3.16% -2.06% 6.57% 0.07% 2.67% 6.81% 8.31% 9.21% -2.98%
1/03/201
2 2.76% 0.53% -6.21% -1.85% 4.04% 3.72% 2.44% 6.99% 17.98% 3.08% 0.40% 4.35%
1/04/201
2 -1.93% 3.99% -2.96% 3.06% -0.39% -5.67% 10.01% -0.27% -5.84% 0.01% -4.30% -2.30%

3. Compute the mean monthly returns and standard deviations for the monthly returns of each of the stocks. Convert the monthly
statistics to annual statistics for easier interpretation (multiply the mean monthly return by 12, and multiply the monthly standard
deviation by (12)0.5.

Average Return= Sum of Returns/Number of Returns
Annual return = [((1 + R) ^12) - 1] x 100
Variance= (Sum (monthly ROR - average monthly ROR) ^ 2)) / number of months)

Standard Deviation= SQRT ((Sum (monthly ROR - average monthly ROR) ^ 2)) / number of months)

Annual standard deviation= (Std. Dev. of Monthly ROR) X SQRT (12) 

ADM BA CAT DE GIS GOO HSY IBM JPM MSFT PG WMT

G
Average return 0.97% 1.04% 2.38% 1.89% 1.77% 0.84% 1.75% 2.06% 1.16% 1.24% 1.34% 1.35%
Variance 0.88% 0.84% 1.54% 1.14% 0.17% 1.04% 0.33% 0.32% 1.11% 0.66% 0.25% 0.21%
Standard 9.36% 9.17% 12.42 10.69 4.13% 10.19 5.73% 5.62% 10.54 8.10% 5.01% 4.60%
deviation % % % %
Annual return 11.70% 12.48 28.55 22.73 21.28 10.05 21.00 24.67 13.94 14.84 16.13 16.18
% % % % % % % % % % %
Annual standard 32.42% 31.78 43.03 37.04 14.31 35.30 19.85 19.47 36.51 28.06 17.37 15.94
deviation % % % % % % % % % % %
4. Add a column in your Excel worksheet with the average return across stocks for each month. This is the monthly return to an
equally weighted portfolio of these stocks. Compute the mean and standard deviation of monthly returns for the equally weighted
portfolio. Double check that the average return on this equally weighted portfolio is equal to the average return of all the individual
stocks. Convert these monthly statistics to annual statistics for interpretation.

Date ADM BA CAT DE GIS GOOG HSY IBM JPM MSFT PG WMT Portfolio
1/05/2007
1/06/2007 -4.81% -3.56% 0.32% 0.71% -3.63% 4.98% -2.75% -0.33% -5.61% -3.23% -2.90% 2.17% -2.17%
1/07/2007 2.02% 8.06% 1.32% 0.96% -3.77% -2.43% -8.19% 5.69% -8.19% -1.17% 1.94% -3.87% -0.35%
1/08/2007 0.77% -6.04% -2.77% 13.47% 2.22% 1.03% 1.68% 5.99% 3.15% -0.43% 7.01% -4.40% 2.56%
1/09/2007 -1.04% 9.44% 4.21% 9.51% 4.88% 10.10% 1.35% 1.81% 4.10% 3.37% 8.49% 1.23% 6.00%
1/10/2007 8.64% -5.64% -4.20% 5.50% 0.54% 24.63% -6.22% -0.93% 3.72% 25.40% -0.43% 4.25% 2.39%
1/11/2007 2.03% -5.65% -2.47% 11.29% 5.93% -1.98% -6.47% -8.92% -1.03% -8.36% 7.71% 6.61% 0.04%
1/12/2007 28.57% -4.63% 1.65% 8.74% -4.26% -0.22% 0.49% 3.69% -3.18% 6.74% -0.09% -0.15% 1.60%
1/01/2008 -4.94% -4.34% -1.44% -5.40% -3.32% -18.39% -7.16% -0.38% 9.79% -8.02% -10.20% 7.86% -3.67%
1/02/2008 2.90% 0.11% 3.20% -2.35% 4.49% -16.50% 3.64% 6.84% -12.39% -16.12% 2.46% -1.68% -1.28%
1/03/2008 -8.07% -9.06% 8.96% -5.26% 7.99% -6.52% 3.51% 2.02% 6.93% 5.28% 6.65% 6.83% 4.68%
1/04/2008 7.48% 14.84% 5.25% 5.20% 1.85% 30.38% 0.30% 5.33% 12.15% 1.01% -3.58% 11.19% 5.25%
1/05/2008 -9.49% -1.82% 2.03% -2.90% 6.32% 2.00% 5.93% 7.71% -7.94% -0.19% -0.06% 0.13% -0.87%
1/06/2008 -14.28% -19.57% -10.04% -10.97% -2.90% -10.14% -14.65% -7.49% -19.02% -1.99% -7.06% -1.71% -9.97%
1/07/2008 -14.65% -6.19% -5.12% -1.96% 6.94% -10.01% 13.40% 8.58% 19.91% -5.98% 8.63% 4.87% 2.19%
1/08/2008 -10.46% 8.17% 3.22% 0.99% 4.50% -2.21% -0.76% -4.32% -2.94% 6.67% 8.10% 1.31% 0.08%
1/09/2008 -12.81% -11.15% -14.88% -29.45% 4.80% -13.55% 11.54% -2.95% 22.65% -1.28% 0.71% 2.33% -3.40%
1/10/2008 -4.58% -7.65% -34.89% -21.06% -0.50% -10.28% -4.81% -19.90% -10.58% -15.79% -6.56% -6.29% -12.59%
1/11/2008 32.93% -17.64% 9.97% -8.88% -5.20% -18.48% -2.26% -11.46% -21.43% -8.80% 1.24% 0.69% -2.15%
1/12/2008 6.47% 2.12% 10.44% 11.02% -2.83% 5.01% -1.51% 4.59% 1.18% -2.36% -3.04% 0.89% 3.08%
1/01/2009 -4.42% 0.42% -29.60% -7.83% -1.59% 10.04% 8.45% 9.75% -17.50% -11.16% -10.91% -15.02% -6.63%
1/02/2009 -1.99% -24.42% -17.43% -19.94% -9.55% -0.16% -8.57% 1.19% -7.36% -4.56% -9.94% 5.17% -7.87%
1/03/2009 5.42% 16.10% 16.02% 20.74% -3.76% 2.98% 5.21% 6.63% 18.50% 15.58% -1.06% 6.45% 9.97%
1/04/2009 -10.70% 14.13% 29.37% 27.49% 2.88% 13.76% 5.13% 7.25% 26.02% 11.21% 6.20% -2.03% 10.19%
1/05/2009 12.54% 13.38% 2.61% 6.13% 3.07% 5.37% -1.46% 3.66% 12.22% 3.94% 7.23% -0.60% 5.31%
1/06/2009 -1.49% -3.06% -5.18% -7.36% 10.68% 1.04% 4.19% -0.50% -7.38% 15.32% -0.42% -1.37% 0.71%
1/07/2009 13.21% 2.27% 35.12% 11.12% 6.27% 5.09% 12.05% 13.68% 13.50% -0.35% 9.84% 3.71% 10.39%
1/08/2009 -3.66% 17.04% 5.45% 0.49% 3.35% 4.20% -0.83% 0.76% 12.78% 5.52% -0.63% 2.70% 4.20%
1/09/2009 2.53% 11.18% 14.56% -0.74% 8.92% 7.40% 0.80% 2.45% 0.98% 5.61% 8.18% -2.27% 5.03%
1/10/2009 3.71% -10.71% 8.39% 7.64% 3.44% 8.12% -1.76% 1.48% -4.53% 8.46% 1.20% 1.92% 2.33%
1/11/2009 2.91% 10.79% 7.86% 18.25% 4.93% 8.74% -5.38% 5.40% 2.00% 6.66% 9.38% 10.52% 6.64%
1/12/2009 2.67% 5.24% -1.42% 1.75% 5.12% 6.34% 3.09% 4.68% -1.78% 4.66% -1.78% -1.37% 0.53%
1/01/2010 -3.69% 12.96% -7.33% -6.53% 1.65% -14.52% 2.86% -5.91% -6.40% -7.00% 2.52% 1.13% -1.36%
1/02/2010 -1.42% 5.12% 11.05% 15.42% 2.67% -0.59% 10.19% 4.53% 8.08% 2.33% 4.54% 1.86% 6.00%
1/03/2010 -0.39% 16.61% 11.16% 4.38% -0.73% 7.65% 9.58% 1.91% 6.78% 3.22% 0.94% 3.48% 4.14%
1/04/2010 -2.64% 0.50% 9.24% 1.67% 1.50% -7.30% 10.76% 1.18% -4.70% 4.83% -0.80% -2.28% 0.97%
1/05/2010 -8.85% -10.65% -9.37% -2.99% 1.78% -7.62% 0.42% -2.31% -6.79% -14.98% 0.10% -5.02% -5.59%
1/06/2010 3.52% -0.82% -0.21% -2.86% 0.70% -8.38% 3.99% -0.19% -7.34% -9.77% -0.74% -3.60% -0.70%
1/07/2010 6.72% 9.44% 17.06% 21.03% -2.74% 8.97% -1.10% 4.71% 10.20% 12.88% 3.07% 7.30% 6.78%
1/08/2010 13.33% -9.50% -5.11% -4.55% 7.70% -7.18% -0.27% -3.40% -9.45% -8.43% -0.60% -1.30% -0.39%
1/09/2010 4.76% 10.39% 21.65% 10.88% 2.13% 16.84% 3.97% 10.21% 4.85% 5.60% 1.60% 8.14% 8.41%
1/10/2010 5.00% 6.96% 0.65% 11.06% 3.86% 16.72% 4.84% 7.72% -0.96% 9.57% 7.09% 1.93% 4.02%
1/11/2010 -12.41% -8.97% 8.97% -2.25% -4.18% -9.45% -4.62% -0.87% -0.31% -4.67% -2.17% 0.56% -2.00%
1/12/2010 4.95% 3.79% 11.40% 11.68% 1.84% 6.88% 2.31% 4.84% 13.60% 11.97% 6.40% 0.42% 6.19%
1/01/2011 9.25% 7.28% 4.20% 10.44% -1.18% 1.08% -0.13% 10.99% 6.09% 0.07% -0.86% 5.26% 4.47%
1/02/2011 14.40% 4.40% 7.20% -0.35% 8.73% 2.17% 12.91% 0.48% 4.16% -3.43% 1.64% -6.61% 3.27%
1/03/2011 -2.17% 4.00% 8.75% 7.96% -0.55% -4.34% 5.40% 1.68% -1.13% -3.16% -1.28% 0.87% 1.09%
1/04/2011 3.38% 8.63% 4.17% 1.45% 6.61% -7.27% 6.97% 5.15% -0.88% 2.87% 6.40% 7.26% 4.10%
1/05/2011 -11.90% -1.53% -7.44% -11.27% 4.88% -2.77% -2.69% -0.45% -4.01% -2.74% 5.17% 1.27% -2.92%
1/06/2011 -5.87% -4.08% 1.17% -3.72% -5.45% -4.28% 3.41% 2.61% -4.57% 5.44% -4.08% -2.30% 0.15%
1/07/2011 1.44% -3.97% -6.66% -3.68% 1.38% 19.22% 0.03% 6.60% -0.41% 6.15% -2.18% 0.05% -0.97%
1/08/2011 -5.58% -4.38% -6.88% 3.58% 3.45% -10.39% 4.67% -4.90% -5.78% -2.20% 5.54% 1.77% -1.29%
1/09/2011 -11.67% -8.10% -18.19% -19.49% 2.62% -4.79% 2.35% 2.76% -18.96% -5.09% 0.30% -0.86% -4.94%
1/10/2011 17.47% 9.59% 28.74% 19.02% 1.18% 15.07% -2.68% 6.16% 16.47% 7.78% 2.37% 10.16% 9.78%
1/11/2011 4.78% 5.20% 4.83% 5.07% 5.60% 1.14% 1.52% 2.38% -9.20% -3.20% 2.81% 4.64% 2.68%
1/12/2011 -3.75% 8.22% -6.82% -1.77% 2.18% 7.76% 8.50% -1.26% 8.39% 3.21% 4.37% 2.23% 1.11%
1/01/2012 0.88% 1.84% 21.10% 12.61% -0.42% -10.19% -0.45% 5.29% 13.13% 14.69% -4.48% 4.08% 6.24%
1/02/2012 9.75% 1.74% 5.68% -3.16% -2.06% 6.57% 0.07% 2.67% 6.81% 8.31% 9.21% -2.98% 3.31%
 1/03/2012 2.76% 0.53% -6.21% -1.85% 4.04% 3.72% 2.44% 6.99% 17.98% 3.08% 0.40% 4.35% 2.40%
1/04/2012 -1.93% 3.99% -2.96% 3.06% -0.39% -5.67% 10.01% -0.27% -5.84% 0.01% -4.30% -2.30% -8.41%
Monthly Statistics:
Average return 1.33%
Standard deviation 4.91%

Annual Statistics
Annual return 16.02%
Annual standard deviation 17.00%
Average return on this equally weighted portfolio = 1.33%

Average return of all the individual stocks = Sum of average returns of individual stocks / Total number of individual stocks

= (0.97% + 1.04% + 2.38% + 1.89% + 1.77% + 0.84% + 1.75% + 2.06% + 1.16% + 1.24%
+ 1.34% + 1.35%) / 12

= 16.0162% / 12

= 1.33%
5. Using the annual statistics, create an Excel plot with standard deviation (volatility) on the x-axis and average return on the y-axis as
follows:
 30.00% 28.55%

24.67%
25.00%
22.73%
21.28% 21.00%
20.00%
Annual Mean Return

16.18%
16.13%
14.84%
15.00% 13.94%
12.48%
11.70%
10.05%
10.00%

5.00%

0.00%
10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

Annual Standard Deviation

6. What do you notice about the average of the volatilities of the individual stocks, compared to the volatility of the equally weighted
portfolio?

By comparing the volatilities of the individual stocks from the graph with volatilities of the equally weighted portfolio, we can
observe that the volatilities of each individual stocks is mostly higher than the volatility of the portfolio, hence, it means that investing
in the portfolio tends to be more stable and less risky than investing in the individual stocks.