Excel Essentials.txt

Please download the following workbook for the Excel Essentials Quiz. Excel-Essentials-Quiz(1).xlsx This spreadsheet contains onthl! continuousl! copounded returns for two stock indexes � "#P and #P$ � and two indi%idual stocks � &azon and 'uke Energ! � for the 1 !ears fro a! **+ to a! *1,. se Excel� s chart function function to generate generate a scatter plot plot of #P$ index onthl! onthl! returns returns (! axis) against &azon onthl! returns (x axis) hen !ou use use � trendline trendline� option for slope/ slope/ "-s0uared/ "-s0uared/ and and the !-intercept/ !-intercept/ doublecheck !our results against the e0ui%alent cell forula answers. Question 1 hat is the slope of the best-fit line (rounded to two decial places)2 *.11 x *.1 x *.1,

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hat is the coefficient of deterination ("-s0uared)2 se the 3rs03 Excel function (Trendline in Excel a! gi%e an inaccurate %alue for "-s0uared). *.14

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hat is the $-intercept/ in percent2 se the 3trendline3 but double-check against the 3intercept3 function. *.,5

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*.+,5 x *.6,5 r

&nswer Question 6 and , based on the inforation below The annual 3#harpe "atio3 is a etric that cobines profitabilit! and risk - it easures units of profitabilit! per unit of risk. 7irst calculate the difference between the annual return of a stock and the annual return of a risk-free in%estent in go%ernent bonds. #econd/ di%ide that difference b! the annualized population standard de%iation of returns of the stock. 7or exaple/ if the annual return of a stock is 1*5/ the annual risk-free bond return is 5/ and the annualized population standard de%iation of returns of the stock is 185/ then the #harpe "atio 9 45:185 9 *.,. 7or this proble/ !ou can estiate the annualized standard de%iation of returns b! ultipl!ing !our calculated %alue for the onthl! population standard de%iation of returns b! the s0uare root of 1. Question 6 &ssuing the risk-free rate is 1.,5 per !ear o%er the full 1-!ear inter%al easured/ which asset had the higher #harpe ratio #P$ or "#P2

"#P

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7or the asset !ou chose in Question 6/ what was the #harpe ratio2 "ound !our results to two decial places. *.,8 x *.,* x *.64

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;n the onth ending on which date did &azon achie%e the highest returns2 x &pril / **? r

hat was the onthl! return fro the 0uestion abo%e2 .>5 x 6+.?5

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hat was 'uke Energ!� s return that sae onth2 *.,15 x +.*65 x 1.1+5

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sing the #ol%er plug-in (#ol%er &dd-;n) for Excel/ answer Questions > and 1*/ based on the inforation below #ol%er &dd-;n.xlsx @etween possible pricing of A, per pound to A, per pound/ the 0uantit! of coffee Egger�s "oast Boffee can sell each onth is a linear function of the retail selling price per pound. The linear function is (0uantit! sold in pounds) 9 (-6**C(Price per pound)) D 1*/***. Question > hat is the re%enue-axiizing selling price per pound for Egger� s "oast Boffee2 ;f this 0uestion is too challenging/ there is another exaple below to re%iew. This can also be found in 3Bourse "esources3 as a 0uick reference.

#ol%eroptiizationexaple(1).xlsx A,.** x A1.,*

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hat is the onthl! re%enue at that price per pound2 ( / indicates thousands) A1,/1** x A6*/*** x A8/1**

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