Objective: This is an assessment on your learnings on the topics on expected return and risks.

Instructions:
A. This time, you are being asked to calculate the following using the data in the 'Test' sheet:
1 Harmonic Mean (Prices and Index)
2 Geometric Mean
3 Geometric Mean Return
4 Arithmetic Mean (Yield)
5 Sum of Variance
6 Standard Deviation
7 Highest Possible Return
8 Lowest Possible Return
9 Coefficient of Variation
10 Covariance
11 Correlation
12 Beta using the 3 techniques (i.e. covariance, slope, regression).

B. Use the example provided to you during our discussion to calculate the measurements above.

C. To do the regression, follow these steps:

1. If 'Add-ins' button was not yet installed in your Microsof Excel, click 'File' in the menu bar.

2. Select 'Options'

3. Click 'Add-ins' and click 'Analysis Toolpack'.

4. Click 'Ok' and restart your Excel.

5. After reopening your Excel File, for Windows 2010, there is an added 'Add-ins' in the menu bar. For Windows 2016, go
6. Go to "Data Analysis"-"Regression" and click OK. Again, enter the market return series as the X variable and Stock A re
r. For Windows 2016, go to "Data" and there you can see the "Data Analysis" button.
X variable and Stock A return as the Y Variable. When you Click OK, you should get the full regression output.
 Period Stock A PSE Index
Price HPR HPY Value HPR HPY
1 115 6500
2 120 1.0435 4.35% 6550 1.007692 0.77%
3 110 0.9167 -8.33% 6400 0.977099 -2.29%
4 105 0.9545 -4.55% 6450 1.007813 0.78%
5 122 1.1619 16.19% 6500 1.007752 0.78%
6 118 0.9672 -3.28% 6490 0.998462 -0.15%
7 124 1.0508 5.08% 6550 1.009245 0.92%
8 126 1.0161 1.61% 6560 1.001527 0.15%
9 140 1.1111 11.11% 6700 1.021341 2.13%
10 160 1.1429 14.29% 6710 1.001493 0.15%
11 135 0.8438 -15.63% 6680 0.995529 -0.45%
12 150 1.1111 11.11% 6710 1.004491 0.45%
13 155 1.0333 3.33% 6720 1.001490 0.15%
14 143 0.9226 -7.74% 6725 1.000744 0.07%
15 160 1.1189 11.89% 6750 1.003717 0.37%
16 165 1.0313 3.13% 6770 1.002963 0.30%
17 170 1.0303 3.03% 6800 1.004431 0.44%
18 163 0.9588 -4.12% 6750 0.992647 -0.74%
19 140 0.8589 -14.11% 6720 0.995556 -0.44%
20 165 1.1786 17.86% 6730 1.001488 0.15%
21 170 1.0303 3.03% 6810 1.011887 1.19%
Harmonic Mean (Prices) 138.94 6651.51804
Geometric Mean 1.0197 1.002332
Geometric Mean Return 1.97% 0.23%
Arithmetic Mean (Yield) 2.41% 0.24%
Sum of Variance
Standard Deviation
Highest Possible Return
Lowest Possible Return
Coefficient of Variation
Covariance
Correlation
Beta
Variance Variance
Stock PSEi Covariance

0.04% 0.00% 0.000103021 SUMMARY OUTPUT

1.15% 0.06% 0.002715449
0.48% 0.00% -0.000378816 Regression Statistics
1.90% 0.00% 0.000741733 Multiple R 0.53545725
0.32% 0.00% 0.000222356 R Square 0.2867144621
0.07% 0.00% 0.000183741 Adjusted R Square 0.2470874877
0.01% 0.00% 0.000006732 Standard Error 0.0836191614
0.76% 0.04% 0.001650343 Observations 20
1.41% 0.00% -0.000103986
3.25% 0.00% 0.001233658 ANOVA
0.76% 0.00% 0.000184636 df SS MS
0.01% 0.00% -0.000008083 Regression 1 0.050591 0.050591
1.03% 0.00% 0.000164944 Residual 18 0.125859 0.006992
0.90% 0.00% 0.000127833 Total 19 0.17645
0.01% 0.00% 0.000004235
0.00% 0.00% 0.000012739 CoefficientsStandard Error t Stat
0.43% 0.01% 0.000634842 Intercept 0.0101041202 0.019411 0.520534
2.73% 0.00% 0.001125694 PSEi 5.9212601086 2.201328 2.689858
2.39% 0.00% -0.000135951
0.00% 0.01% 0.000058780

0.88225% 0.007%
9.39% 0.85%
11.81% 0.85%
-6.98% -0.85%
3.89 3.59
0.000427195
0.53545725
5.9212601086
or 5.92126
 F Significance F
7.235336 0.014971

P-value Lower 95%Upper 95%Lower 95.0%

Upper 95.0%
0.609035 -0.030677 0.050885 -0.030677 0.050885
0.014971 1.296441 10.54608 1.296441 10.54608