Use the following for #1-5:
use yahoo! finance to download the monthly stock prices for netflix (nflx) from january 2012 until january 2015 (36 return observations). (hint: you just need the date and adj close prices column from here).
use excel to answer the following questions:
1. what is the holding period return (hpr)?
what is the geometric average return (gar)?
(hint: gar= [[(1+r1)(1+r2+…+(1+rn)]^(1/n)] – 1)
what is the arithmetic average return (aar)?
what is the standard deviation of the monthly return (sd)?
2. what are the annualized values for each of these? :
annualized gar: (hint: [(1+gar)^(1/12)] – 1)
annualized aar:
annualized sd: