Question

need help with all parts please asap

P10-9 (similar to) b. What was the annual volatiity for Microsoft stock from spreadheet) S&P 00 Realined S&P 500 Year End 220% 68% 8.9% 870 82 20 80 20.96 248 29 1418 .30 1468 36 27.16 27 86 21.85 27.19 2544 26.59 32 67 47% 1.5% 370% 265% 1257 64 0556 16.0% 32.4% 5 8% 442% 1848 36 when paid

Answer 1

Average annual return = 8.62%

Annul volatility (or standard deviation) = 25.97%

Year (n = 13)	Microsoft return (%)	(Return - average)	(Return - average)^2
2002	-22.00%	-30.62%	0.0937
2003	6.80%	-1.82%	0.0003
2004	8.90%	0.28%	0.0000
2005	-0.90%	-9.52%	0.0091
2006	15.80%	7.18%	0.0052
2007	20.80%	12.18%	0.0148
2008	-44.40%	-53.02%	0.2811
2009	60.50%	51.88%	0.2692
2010	-6.50%	-15.12%	0.0228
2011	-4.50%	-13.12%	0.0172
2012	5.80%	-2.82%	0.0008
2013	44.20%	35.58%	0.1266
2014	27.50%	18.88%	0.0357
Total	112.00%		0.8765
Average (Total/n)	8.62%

Standard deviation = [Sum of (return - average)^2/n ]^(0.5)

= [0.8765/13]^0.5

= 25.97%