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FIN 340 Module Two Activity Instructions Open a new Excel workbook in which you can aggregate all of the data and make the necessary calculations

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FIN 340 Module Two Activity Instructions

1. Open a new Excel workbook in which you can aggregate all of the data and make the necessary calculations.

 

2. Create a Data tab where you will copy your price data, and a Table tab where you will put your calculations for each stock/ETF into a presentable Summary Table.

 

5. Change the Data Settings:  

 

• • Change the Time Period settings by entering the most recent month-end date into the End Date box, and then change the Start Date box to five years prior to the End Date and select Done.  
  • Change the Frequency setting to Monthly.
  • Select the Apply box at the right-hand side of the Settings bar. The data should update.
  • Select Download Data. The data should begin downloading as a CSV file.

 

 

In the =(B5/B4-1) formula, B5 is the more recent date and B4 is the older date. The =(B5/B4-1) formula can be dragged by hovering over the bottom right corner of the cell until you see +. Once you see +, you can hold your left mouse button and drag that formula to other cells. If the stock price went down, you will have a negative result.

 

6. Open the CSV file: Depending on the browser you use, you can either open the file from the browser or go to the appropriate file path where the file was

saved and open from your file explorer.

 

7. Copy Data: For the first of the three stocks, you will want to copy both the Date column and the Adj Close column from the CSV file to your Excel workbook tab named Data. For the second and third stocks, you only need to copy the Adj Close column. You should change the Adj Close heading for each stock to the company name or symbol so the columns are easily identifiable. After all three stocks have been copied over, scroll all the way down to the bottom of the columns and make sure they are the same length to verify that you have copied the same amount of data for each stock.  

 

8. Calculate the monthly returns for each month. Remember that the Adj Close prices that you downloaded from Yahoo! include all dividends. Therefore, you can simply take the percentage change between each month for each stock. You can create another tab for the monthly returns, but you may prefer to keep this data in the same tab as the price data, since they are so closely linked. This will also allow you to scan and review the sets of data side-byside for accuracy checks.  

 

9. Create the Summary Table: You will create a table in the Table tab where you can aggregate all of the summary statistics side-by-side so they are easily comparable to one another. You can determine your columns and rows by the number of stocks in the table compared to the number of summary statistics you are placing in the table. You typically want the larger number to go down the rows and the lesser number to go across the columns. Here we have five summary statistics and three stocks, so you should place statistics down the rows and stocks across the columns.  

             

 

 

Statistic Excel Functions

 

Average Monthly Return: AVERAGE

Last One-Year Return: Percentage change between two dates (Adj Close from Yahoo! includes dividend adjustments)

Monthly Standard Deviation: STDEV.S

Annualized Return: The annualized return transforms the average monthly return into a comparable one-year return. ((1+Avg. Monthly Return)^12)-1

Annualized Standard Deviation: The annualized standard deviation transforms the monthly standard deviation into a comparable one-year standard deviation. Monthly St. Dev * SQRT(12)

 

FIN 340 Module Two Activity Guidelines and Rubric

Overview: This activity will help you gather and analyze data relating to returns and standard deviations.

Prompt: Use Yahoo! Finance to get monthly pricing for the S&P 500 ETF (SPY), Coca-Cola, and Netflix for the past five years. Use the provided instructions to complete this activity.

 

Specifically, the following critical elements must be addressed:

 

1. Calculate the monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved.
2. Calculate the average monthly return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved.
3. Calculate the annualized returns based on the monthly average return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved.
4. Calculate the standard deviation of monthly returns for S&P 500 ETF (SPY), Coca Cola, and Netflix, supporting each calculation by showing the work involved.
5. Calculate the annualized standard deviation based on standard deviation of monthly returns, supporting each calculation by showing the work involved.
6. Compare the differences in returns and standard deviations of the three sets of data and discuss their investment implications using a cell within the spreadsheet document.

 

Rubric

Guidelines for Submission: You must submit a completed Excel spreadsheet that fulfills the requirements outlined in the Module Two Activity Instructions document.  

 

 

Critical Elements	Exemplary	Proficient	Needs Improvement	Not Evident	Value
Monthly Returns		Calculates the monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved with no errors  (100%)	Calculates the monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, but calculations contain errors, or work to support calculations is not shown  (75%)	Does not calculate the monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, or provide evidence of the work to support each calculation  (0%)	14
Average Monthly Return		Calculates the average monthly return for S&P 500 ETF (SPY), CocaCola, and Netflix, supporting each calculation by showing the work involved with no errors  (100%)	Calculates the average monthly return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, but calculations contain errors, or work to support calculations is not shown  (75%)	Does not calculate the average monthly return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, or provide evidence of the work to support each calculation  (0%)	14

 

 

 

Annualized Returns		Calculates the annualized returns based on the monthly average return for S&P 500 ETF (SPY), CocaCola, and Netflix, supporting each calculation by showing the work involved with no errors  (100%)	Calculates the annualized returns based on the monthly average return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, but calculations contain errors, or work to support calculations is not shown  (75%)	Does not calculate the annualized returns based on the monthly average return for S&P 500 ETF (SPY), Coca-Cola, and Netflix, or provide evidence of the work to support each calculation  (0%)	14
Standard Deviation of Monthly Returns		Calculates the standard deviation of monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, supporting each calculation by showing the work involved with no errors  (100%)	Calculates the standard deviation of monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, but calculations contain errors, or work to support calculations is not shown  (75%)	Does not calculate the standard deviation of monthly returns for S&P 500 ETF (SPY), Coca-Cola, and Netflix, or provide evidence of the work to support each calculation  (0%)	14
Annualized Standard Deviation		Calculates the annualized standard deviation based on standard deviation of monthly returns, supporting each calculation by showing the work involved with no errors  (100%)	Calculates the annualized standard deviation based on standard deviation of monthly returns, but calculations contain errors, or work to support calculations is not shown  (75%)	Does not calculate the annualized standard deviation based on standard deviation of monthly returns, or provide evidence of the work to support each calculation  (0%)	14
Differences in Returns and Standard Deviations	Meets “Proficient” criteria, and comparison demonstrates a deep understanding of the content  (100%)	Compares the differences in returns and standard deviations of the sets of data and discusses their investment implications  (85%)	Compares the differences in returns and standard deviations of the three sets of data and discusses their investment implications, but comparison is inaccurate and/or incomplete  (55%)	Does not compare the differences in returns and standard deviations of the three sets of data or discuss their investment implications  (0%)	20
Articulation of Response	Meets “Proficient” criteria and  is presented in a professional and easy-to-read format   (100%)	Submission is well-organized, clear, concise, convincing, and free of errors in spelling, syntax, or grammar, with relevant sources that are authoritative and properly cited  (85%)	Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas  (55%)	Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas  (0%)	10
				Total	100%