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Financial Analysis using Excel

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Financial Analysis with Microsoft Excel

1) Suppose that at the beginning of January 2000, you purchased shares in Advanced Micro Devices, Inc. (NYSE: AMD). It is now five years later, and you decide to evaluate your holdings to see if you have done well with this investment. The table below shows the market prices of AMD.

Date Price
2000 13.81
2001 15.86
2002 6.46
2003 14.90
2004 22.02
2005 30.60

a) Enter the data, as shown, into a worksheet and format the table as shown.

b) Create a formula to calculate your rate of return for each year. Format the results as percentages with two decimal places.

c) Calculate the total return for the entire holding period. What is the compound average annual rate of return?

d) Create a line chart showing the stock price from January 2000 to January 2005. Make sure to title the chart and label the axes.

e) Experiment with the formatting possibilities of the chart. For example, you might try changing the line to a three dimensional line and filling the plot area with a marble background.


Solution Summary

The solution creates a financial analysis using excel.