 |  Fundamentals of Corporate Finance, 4/e Stephen A. Ross,
Massachusetts Institute of Technology
Randolph W. Westerfield,
University of Southern California
Bradford D. Jordan,
University of Kentucky
Gordon S. Roberts,
York University
Some Lessons from Capital Market History
S&P ProjectsThe following questions can be used with Standard & Poor's Educational Version of Market Insight.
Calculating Yields
Download the historical stock prices for Suncor Energy Inc. (SU) under the "Mthly. Adj. Prices" link. Find the closing stock price for the beginning and end of the prior two years. Now use the annual financial statements to find the dividend for each of these years. What was the capital gains yield and dividend yield for Suncor stock for each of these years? Now calculate the capital gains yield and dividend for Nexen Inc. (NXY). How do the returns for these two companies compare? Calculating Average Returns
Download the Monthly Adjusted Prices for ATI Technologies Inc. (ATYT). What is the return on the stock over the past 12 months? Now use the 1 Month Total Return and calculate the average monthly return. Is this one-twelfth of the annual return you calculated? Why or why not? What is the monthly standard deviation of ATI's stock over the past year?
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2002 McGraw-Hill Higher Education