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Investments 4/c/e
Investments, 4th Canadian Edition, 4/e
Zvi Bodie, Boston University School of Management
Alex Kane, University of California, San Diego
Alan Marcus, Boston College
Stylianos Perrakis, Concordia University
Peter Ryan, University of Ottawa

Concepts and Issues: Return, Risk and Risk Aversion

S&P Projects

Prepared by William Lim, University of New Brunswick.

Calculating Average Returns and Standard Deviations

Using the monthly closing prices on a company’s stock, e.g. Biovail Corp (BVR), calculate the return each month for the past year. What is the average monthly return for this company over the past year? What is the standard deviation of monthly returns for this stock?

Notes:

  1. Click on “Company” in the Market Insight home page to access the ticker box.
  2. Enter the ticker into the ticker box. Note that these tickers correspond to the listing in the New York Stock Exchange, not the Toronto Stock Exchange.
  3. The share prices are given in U.S. dollars, not Canadian dollars.





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