Using the data in the table: a. What was the average annual return of Microsoft stock from 2005-2017? b. What was the annual volatility for Microsoft stock from 2005-2017? a. What was the average annual return of Microsoft stock from 2005-2017? The average annual return is%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2005-2017 S&P 500 Realized. Return Microsoft Realized 1-Month Return T-Bill Return Year End 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 S&P 500 Index 1211.92 1248.29 1418.30 1468.36 903.25 1115.10 1257.64 1257.61 1426.19 1848.36 Dividends Paid* 23.15 27.16 27.86 21.85 27.19 25.44 26.59 32.67 39.75 4.90% 15.80% 5.50% - 37.00% 26.50% 15.10% 2.10% 16.00% 32.40% -0.90% 15.80% 20.80% -44.40% 60.50% -6.50% -4.50% 5.80% 44.30% 3.00% 4.80% 4.70% 1.50% 0.10% 0.10% 0.00% 0.10% 0.00% - X

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
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Using the data in the table:,
a. What was the average annual return of Microsoft stock from 2005-2017?
b. What was the annual volatility for Microsoft stock from 2005-2017?
a. What was the average annual return of Microsoft stock from 2005-2017?
The average annual return is %. (Round to two decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2005-2017
S&P 500
Realized
Return
Microsoft
Realized
Return
Dividends
Paid*
Year End
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
S&P 500
Index
1211.92
1248.29
3.00%
4.80%
1418.30
1468.36
903.25
4.70%
1.50%
0.10%
0.10%
1115.10
1257.64
1257.61
0.00%
1426.19
0.10%
1848.36
0.00%
0.00%
2058.90
2043.94
0.00%
0.20%
2238.83
2673.61
0.80%
*Total dividends paid by the 500 stocks in the portfolio, based on the number of shares of
each stock in the index, adjusted until the end of the year, assuming they were reinvested
when paid.
Source: Standard & Poor's, Microsoft and U.S. Treasury Data
23.15
27.16
27.86
21.85
27.19
25.44
26.59
32.67
39.75
42.47
43.45
49.56
53.99
Print
4.90%
15.80%
5.50%
- 37.00%
26.50%
15.10%
2.10%
16.00%
32.40%
13.70%
1.40%
12.00%
21.80%
Done
1-Month
T-Bill Return
-0.90%
15.80%
20.80%
- 44.40%
60.50%
- 6.50%
-4.50%
5.80%
44.30%
27.60%
22.70%
15.10%
40.70%
- X
Transcribed Image Text:Using the data in the table:, a. What was the average annual return of Microsoft stock from 2005-2017? b. What was the annual volatility for Microsoft stock from 2005-2017? a. What was the average annual return of Microsoft stock from 2005-2017? The average annual return is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2005-2017 S&P 500 Realized Return Microsoft Realized Return Dividends Paid* Year End 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 S&P 500 Index 1211.92 1248.29 3.00% 4.80% 1418.30 1468.36 903.25 4.70% 1.50% 0.10% 0.10% 1115.10 1257.64 1257.61 0.00% 1426.19 0.10% 1848.36 0.00% 0.00% 2058.90 2043.94 0.00% 0.20% 2238.83 2673.61 0.80% *Total dividends paid by the 500 stocks in the portfolio, based on the number of shares of each stock in the index, adjusted until the end of the year, assuming they were reinvested when paid. Source: Standard & Poor's, Microsoft and U.S. Treasury Data 23.15 27.16 27.86 21.85 27.19 25.44 26.59 32.67 39.75 42.47 43.45 49.56 53.99 Print 4.90% 15.80% 5.50% - 37.00% 26.50% 15.10% 2.10% 16.00% 32.40% 13.70% 1.40% 12.00% 21.80% Done 1-Month T-Bill Return -0.90% 15.80% 20.80% - 44.40% 60.50% - 6.50% -4.50% 5.80% 44.30% 27.60% 22.70% 15.10% 40.70% - X
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