Problem - 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 lag 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&P 500 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).
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Data
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Closing Pr
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11/30/2012
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1,400.38
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11/29/2012
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1,398.26
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11/28/2012
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1,390.84
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11/27/2012
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1,385.35
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11/23/2012
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1,375.93
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11/22/2012
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1,394.35
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11/21/2012
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1,390.71
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11/20/2012
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1,411.4
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11/19/2012
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1,426.63
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11/16/2012
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1,425.35
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11/15/2012
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1,423.57
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11/14/2012
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1,408.66
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11/13/2012
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1,403.04
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11/12/2012
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1,403.58
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11/9/2012
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1,388.28
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11/8/2012
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1,397.68
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11/7/2012
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1,392.37
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11/6/2012
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1,418.26
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11/5/2012
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1,407.49
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11/2/2012
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1,411.9
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11/1/2012
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1,409.34
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10/31/2012
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1,385.59
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