The following table contains annual returns for the stocks of Home Depot (HD) an

Question

The following table contains annual returns for the stocks of Home Depot (HD) and Lowe’s (LOW). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use Excel to create a spreadsheet that calculates annual portfolio returns for an equally weighted portfolio of HD and LOW. Also, calculate the average annual return for both stocks and the portfolio.

Year HD Returns LOW Returns 2005 -4.3% 16.1% 2006 1.0% -6.1% 2007 -31.1% 26.8% 2008 -11.4% -3.3% 2009 30.5% 10.6% 2010 25% 9.2% 2011 23.5% 3.4% 2012 50.3% 42.9% 2013 35.9% 41.8% 2014 30.2% 41.2%

Explanation / Answer

excel " =" by "="

Year HD Returns LOW Returns portfolio 2005 -4.30% 16.10% 5.90% 2006 1.00% -6.10% -2.55% 2007 -31.10% 26.80% -2.15% 2008 -11.40% -3.30% -7.35% 2009 30.50% 10.60% 20.55% 2010 25% 9.20% 17.10% 2011 23.50% 3.40% 13.45% 2012 50.30% 42.90% 46.60% 2013 35.90% 41.80% 38.85% 2014 30.20% 41.20% 35.70% avg_portfolio 16.61%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.