Returns and sample statistics of retu

This spreadsheet shows you how to compute returns, average returns, variances, and covariance using a sample of non-div
returns. For each statistic, I show that applying the formula discussed in the video can be done by using built-in functions in

Prices Returns Average returns

Period Stock ABC Stock XYZ Stock ABC Stock XYZ Stock ABC Stock XYZ

using the
formula
discussed in
1 11.45 24.51 the video 0.1067 0.0518
using Excel's
2 12.28 21.22 0.07 -0.13 function 0.1067 0.0518
3 10.88 20.67 -0.11 -0.03
4 6.82 19.35 -0.37 -0.06
5 7.63 19.45 0.12 0.01
6 9.30 18.86 0.22 -0.03
7 10.76 20.35 0.16 0.08
8 11.46 23.60 0.07 0.16
9 14.54 24.37 0.27 0.03
10 22.37 33.74 0.54 0.38
11 24.94 37.49 0.11 0.11
ample statistics of returns
variance using a sample of non-dividend paying stock prices. You have a sample of 11 periods, and hence 10
done by using built-in functions in Excel.

Variances of returns Covariance of returns

Stock ABC and Stock
Stock ABC Stock XYZ XYZ

using the using the

formula formula
discussed in discussed in
the video 0.0567 0.0211 the video 0.0230
using Excel's using Excel's
function 0.0567 0.0211 function 0.0230