Calculate the arithmetic average returns of your stock

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Reference no: EM131842541

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).

Reference no: EM131842541

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