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    Calculating Returns on Stocks

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    I have a set of monthly stock performance figures. I have to calculate the % return for each month. Here is an example of my data:

    Jul 04 - 19.09
    Jun 04 - 19.06
    May 04 - 17.95
    Apr 04 - 14.22
    Mar 04 - 14.14

    To determine the % return for Jul 04 would I take (19.09 - 19.06)/19.06 to come up with .62%? Would I then take the same formula for each month needed?

    Also, I have a close figure and an adjusted close figure. I know I need to use the adjusted close figure, but what is the difference between the two?

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    Solution Preview

    If you are calculating returns for a month, you need to take the following formula -

    (Closing Prince for the month - Opening Price of the month)/Opening Price

    In general if you have to find the return for any ...

    Solution Summary

    The solution explains how to calculate stock returns using monthly data.