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    Calculate Average Monthly Return, Standard deviation and Beta

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    a) Following the instructions in the Appendix, obtain monthly returns for these stocks from January 2006 to December 2010. Also, obtain monthly returns for the S&P 500 index over the same period. You do not need to report the monthly returns. Your answers to the remaining questions in this part will reveal whether or not you did the right thing.

    I did that for the ten companies---I put it in two forms excel spreadsheet and regular word. Need help with b and c.

    b) Calculate the average monthly return and its standard deviation for each stock. Based on the standard deviations, rank the stocks from the least risky to the most risky.

    c) Using the monthly returns obtained in (a) above, compute the beta for each of the stocks. Based on the betas, rank the stocks from the least risky to the most risky.

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    Solution Summary

    The solution calculates average monthly return, standard deviation and beta.