Question

Assume that the spreadsheet below shows the closing prices for the S&P 500 Index for the...

Assume that the spreadsheet below shows the closing prices for the S&P 500 Index for the month of November 2012. Using a column with six decimal places:

a. Calculate the daily percentage changes in the S&P 500 Index. The last daily change is for 11/1/2012, resulting in 21 daily changes.

b. Calculate the average daily change in the Index, shown to 6 decimal places.

c. State the average daily change in the S&P500 Index for the month of November 2012 as a

percentage.

d. State the implied monthly change in the S&P 500 Index for the month of November 2012 as a percentage. (Notice the word implied—this in fact is not the correct percentage change for the month, as we will learn when we discuss the difference between the arithmetic mean and the geometric mean).

Date Closing Pr

11/30/2012 1,400.38

11/29/2012 1,398.26

11/28/2012 1,390.84

11/27/2012 1,385.35

11/23/2012 1,375.93

11/22/2012 1,394.35

11/21/2012 1,390.71

11/20/2012 1,413.4

11/19/2012 1,426.63

11/16/2012 1,425.35

11/15/2012 1,423.57

11/14/2012 1,408.66

11/13/2012 1,403.04

11/12/2012 1,403.58

11/9/2012 1,388.28

11/8/2012 1,397.68

11/7/2012 1,392.57

11/6/2012 1,418.26

11/5/2012 1,407.49

11/2/2012 1,413.9

11/1/2012 1,409.34

10/31/2012 1,385.59

Average =

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Homework Answers

Answer #1
Date Price Percentage change
30-Nov 1,400.38 0.001516
29-Nov 1,398.26 0.005335
28-Nov 1,390.84 0.003963
27-Nov 1,385.35 0.006846
23-Nov 1,375.93 -0.01321
22-Nov 1,394.35 0.002617
21-Nov 1,390.71 -0.01605
20-Nov 1,413.40 -0.00927
19-Nov 1,426.63 0.000898
16-Nov 1,425.35 0.00125
15-Nov 1,423.57 0.010585
14-Nov 1,408.66 0.004006
13-Nov 1,403.04 -0.00038
12-Nov 1,403.58 0.011021
09-Nov 1,388.28 -0.00673
08-Nov 1,397.68 0.003669
07-Nov 1,392.57 -0.01811
06-Nov 1,418.26 0.007652
05-Nov 1,407.49 -0.00453
02-Nov 1,413.90 0.003236
01-Nov 1,409.34 0.017141
31-Oct 1,385.59
Average change 0.000545
As percentage 0.0545%
Monthly change 1.067%

Daily chnage = (Day price-previous day price)/Day price

Avergae change is average of 20 daily changes

Monthly change = (Price on 30 Nov- Price on 31st Oct)/(Price on 31st October)

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