Question: The following are the end-of month prices for both the Standard & Poor’s 500 Index and Ford Motor Company’s common stock.
a. Using the data here, calculate the holding-period returns for each of the months.
|
MONTH AND YEAR
|
S&P 500 INDEX
|
FORD
|
|
March-05
|
$1,180.59
|
$11.33
|
|
April-05
|
1,156.85
|
9.11
|
|
May-05
|
1,191.50
|
9.98
|
|
June-05
|
1,191.33
|
10.24
|
|
July-05
|
1,234.18
|
10.74
|
|
August-05
|
1,220.33
|
9.97
|
|
September-05
|
1,228.81
|
9.86
|
|
October-05
|
1,207.01
|
8.32
|
|
November-05
|
1,249.48
|
8.13
|
|
December-05
|
1,248.29
|
7.72
|
|
January-06
|
1,280.08
|
8.58
|
|
February-06
|
1,280.66
|
7.97
|
|
March-06
|
1,291.24
|
7.96
|