Search the internet to find the monthly stock price in 2015 for the S&P 500, Wal

Question

Search the internet to find the monthly stock price in 2015 for the S&P 500, Wal-Mart and Target. Put a table together with information and also state your source of information (URL used). Then calculate the average monthly holding-period returns and the standard deviation of these returns. A. Assume you want to invest half your money in Wal-Mart and half your money in Target. Calculate the average monthly holding-period return for your two stock portfolio. How does this compare to the S&P 50 average monthly holding-period return?

Explanation / Answer

Source: http://www.investing.com/equities/target-historical-data

If I invest 50% money in Wal-Mart and 50% money in Target

Holding period return of the protfolio=0.5*3%+0.5*4%=3.5%

Holding period return of S&P=2.9%

Thus average holding period return of the Portfolio is greater than the holding period return of the S&P

Return=(P1/P0-1) S&P Wal Mart Target S&P Return Wal Mart return Target return Jan 01, 2015 1994.99 84.98 73.61 Feb 01, 2015 2104.5 83.93 76.83 5.5% -1.2% 4.4% Mar 01, 2015 2067.89 82.25 82.07 -1.7% -2.0% 6.8% Apr 01, 2015 2085.51 78.05 78.83 0.9% -5.1% -3.9% May 01, 2015 2107.39 74.27 79.32 1.0% -4.8% 0.6% Jun 01, 2015 2063.11 70.93 81.63 -2.1% -4.5% 2.9% Jul 01, 2015 2103.84 71.98 81.85 2.0% 1.5% 0.3% Aug 01, 2015 1972.18 64.73 77.71 -6.3% -10.1% -5.1% Sep 01, 2015 1920.03 64.84 78.66 -2.6% 0.2% 1.2% Oct 01, 2015 2079.36 57.24 77.18 8.3% -11.7% -1.9% Nov 01, 2015 2080.41 58.84 72.5 0.1% 2.8% -6.1% Dec 01, 2015 2043.94 61.3 72.61 -1.8% 4.2% 0.2% Avergae Monthly holding period return 2.9% 4.0% 3.0% Standart deviation of monthly return[STDEV.P()] 3.8% 4.8% 3.8%

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