Using the data shown in the table​ below that contains historical monthly prices and dividends​ (paid at the end of the​month) for Ford Motor Company stock​ (Ticker: F) from August 1994 to August​ 1998, compute​ the: a. Average monthly return over this period is --%. ​(Round to two decimal​ places.) b. Monthly volatility​ (or standard​ deviation) over this period. ​(Round to two decimal​ places.) c. compute 95% confidence interval of the estimate of the average monthly return. Date    Stock Price    Dividend    Return    1+Rt Aug-94    $29.250    $0.000         Sep-94    $27.750    $0.000    -5.13%    0.949 Oct-94    $29.500    $0.260    7.24%    1.072 Nov-94    $27.125    $0.000    -8.05%    0.919 Dec-94    $27.875    $0.000    2.76%    1.028 Jan-95    $25.250    $0.260    -8.48%    0.915 Feb-95    $26.125    $0.000    3.47%    1.035 Mar-95    $26.875    $0.000    2.87%    1.029 Apr-95    $27.125    $0.310    2.08%    1.021 May-95    $29.250    $0.000    7.83%    1.078 Jun-95    $29.750    $0.000    1.71%    1.017 Jul-95    $29.000    $0.310    -1.48%    0.985 Aug-95    $30.750    $0.000    6.03%    1.06 Sep-95    $31.125    $0.000    1.22%    1.012 Oct-95    $28.750    $0.350    -6.51%    0.935 Nov-95    $28.250    $0.000    -1.74%    0.983 Dec-95    $28.875    $0.000    2.21%    1.022 Jan-96    $29.500    $0.350    3.38%    1.034 Feb-96    $31.250    $0.000    5.93%    1.059 Mar-96    $34.375    $0.000    10.00%    1.1 Apr-96    $35.875    $0.350    5.38%    1.054 May-96    $36.500    $0.000    1.74%    1.017 Jun-96    $32.375    $0.000    -11.30%    0.887 Jul-96    $32.375    $0.385    1.19%    1.012 Aug-96    $33.500    $0.000    3.47%    1.035 Sep-96    $31.250    $0.000    -6.72%    0.933 Oct-96    $31.250    $0.385    1.23%    1.012 Nov-96    $32.750    $0.000    4.80%    1.048 Dec-96    $32.250    $0.000    -1.53%    0.985 Jan-97    $32.125    $0.385    0.81%    1.008 Feb-97    $32.875    $0.000    2.33%    1.023 Mar-97    $31.375    $0.000    -4.56%    0.954 Apr-97    $34.750    $0.420    12.10%    1.121 May-97    $37.500    $0.000    7.91%    1.079 Jun-97    $38.000    $0.000    1.33%    1.013 Jul-97    $40.875    $0.420    8.67%    1.087 Aug-97    $43.000    $0.000    5.20%    1.052 Sep-97    $45.125    $0.000    4.94%    1.049 Oct-97    $43.688    $0.420    -2.25%    0.977 Nov-97    $43.000    $0.000    -1.57%    0.984 Dec-97    $48.563    $0.000    12.94%    1.129 Jan-98    $51.000    $0.420    5.88%    1.059 Feb-98    $56.563    $0.000    10.91%    1.109 Mar-98    $64.813    $0.000    14.59%    1.146 Apr-98    $45.813    $23.680    7.22%    1.072 May-98    $51.875    $0.000    13.23%    1.132 Jun-98    $59.000    $0.000    13.73%    1.137 Jul-98    $57.000    $0.420    -2.68%    0.973 Aug-98    $44.625    $0.000    -21.71%    0.783

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Using the data shown in the table​ below that contains historical monthly prices and dividends​ (paid at the end of the​month) for Ford Motor Company stock​ (Ticker: F) from August 1994 to August​ 1998, compute​ the:

a. Average monthly return over this period is --%. ​(Round to two decimal​ places.)

b. Monthly volatility​ (or standard​ deviation) over this period. ​(Round to two decimal​ places.)

c. compute 95% confidence interval of the estimate of the average monthly return.

Date    Stock Price    Dividend    Return    1+Rt
Aug-94    $29.250    $0.000        
Sep-94    $27.750    $0.000    -5.13%    0.949
Oct-94    $29.500    $0.260    7.24%    1.072
Nov-94    $27.125    $0.000    -8.05%    0.919
Dec-94    $27.875    $0.000    2.76%    1.028
Jan-95    $25.250    $0.260    -8.48%    0.915
Feb-95    $26.125    $0.000    3.47%    1.035
Mar-95    $26.875    $0.000    2.87%    1.029
Apr-95    $27.125    $0.310    2.08%    1.021
May-95    $29.250    $0.000    7.83%    1.078
Jun-95    $29.750    $0.000    1.71%    1.017
Jul-95    $29.000    $0.310    -1.48%    0.985
Aug-95    $30.750    $0.000    6.03%    1.06
Sep-95    $31.125    $0.000    1.22%    1.012
Oct-95    $28.750    $0.350    -6.51%    0.935
Nov-95    $28.250    $0.000    -1.74%    0.983
Dec-95    $28.875    $0.000    2.21%    1.022
Jan-96    $29.500    $0.350    3.38%    1.034
Feb-96    $31.250    $0.000    5.93%    1.059
Mar-96    $34.375    $0.000    10.00%    1.1
Apr-96    $35.875    $0.350    5.38%    1.054
May-96    $36.500    $0.000    1.74%    1.017
Jun-96    $32.375    $0.000    -11.30%    0.887
Jul-96    $32.375    $0.385    1.19%    1.012
Aug-96    $33.500    $0.000    3.47%    1.035
Sep-96    $31.250    $0.000    -6.72%    0.933
Oct-96    $31.250    $0.385    1.23%    1.012
Nov-96    $32.750    $0.000    4.80%    1.048
Dec-96    $32.250    $0.000    -1.53%    0.985
Jan-97    $32.125    $0.385    0.81%    1.008
Feb-97    $32.875    $0.000    2.33%    1.023
Mar-97    $31.375    $0.000    -4.56%    0.954
Apr-97    $34.750    $0.420    12.10%    1.121
May-97    $37.500    $0.000    7.91%    1.079
Jun-97    $38.000    $0.000    1.33%    1.013
Jul-97    $40.875    $0.420    8.67%    1.087
Aug-97    $43.000    $0.000    5.20%    1.052
Sep-97    $45.125    $0.000    4.94%    1.049
Oct-97    $43.688    $0.420    -2.25%    0.977
Nov-97    $43.000    $0.000    -1.57%    0.984
Dec-97    $48.563    $0.000    12.94%    1.129
Jan-98    $51.000    $0.420    5.88%    1.059
Feb-98    $56.563    $0.000    10.91%    1.109
Mar-98    $64.813    $0.000    14.59%    1.146
Apr-98    $45.813    $23.680    7.22%    1.072
May-98    $51.875    $0.000    13.23%    1.132
Jun-98    $59.000    $0.000    13.73%    1.137
Jul-98    $57.000    $0.420    -2.68%    0.973
Aug-98    $44.625    $0.000    -21.71%    0.783

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