Transcript
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    LOAN AMORTIZATION SCHEDULE

    6.90%Annual interest rate compounded monthly

    60 Number of monthly payments

    29140Amount of Loan

    $575.63Payment Amount

    fter the 5th payment, remaining balance owed is $27,076.0

    Payment # Payment Principal Interest Balance

    29140

    1 $575.63 $408.08 $167.56 $28,731.93

    2 $575.63 $410.42 $165.21 $28,321.50

    3 $575.63 $412.78 $162.85 $27,908.72

    4 $575.63 $415.15 $160.48 $27,493.57

    5 $575.63 $417.54 $158.09 $27,076.03

    6 $575.63 $419.94 $155.69 $26,656.08

    7 $575.63 $422.36 $153.27 $26,233.72

    8 $575.63 $424.79 $150.84 $25,808.94

    9 $575.63 $427.23 $148.40 $25,381.71

    10 $575.63 $429.69 $145.94 $24,952.03

    11 $575.63 $432.16 $143.47 $24,519.87

    12 $575.63 $434.64 $140.99 $24,085.23

    13 $575.63 $437.14 $138.49 $23,648.09

    14 $575.63 $439.65 $135.98 $23,208.44

    15 $575.63 $442.18 $133.45 $22,766.25

    16 $575.63 $444.72 $130.91 $22,321.53

    17 $575.63 $447.28 $128.35 $21,874.2518 $575.63 $449.85 $125.78 $21,424.40

    19 $575.63 $452.44 $123.19 $20,971.96

    20 $575.63 $455.04 $120.59 $20,516.91

    21 $575.63 $457.66 $117.97 $20,059.26

    22 $575.63 $460.29 $115.34 $19,598.97

    23 $575.63 $462.94 $112.69 $19,136.03

    24 $575.63 $465.60 $110.03 $18,670.43

    25 $575.63 $468.28 $107.35 $18,202.16

    26 $575.63 $470.97 $104.66 $17,731.19

    27 $575.63 $473.68 $101.95 $17,257.5228 $575.63 $476.40 $99.23 $16,781.12

    29 $575.63 $479.14 $96.49 $16,301.98

    30 $575.63 $481.89 $93.74 $15,820.08

    31 $575.63 $484.66 $90.97 $15,335.42

    32 $575.63 $487.45 $88.18 $14,847.97

    33 $575.63 $490.25 $85.38 $14,357.71

    34 $575.63 $493.07 $82.56 $13,864.64

    35 $575.63 $495.91 $79.72 $13,368.73

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    36 $575.63 $498.76 $76.87 $12,869.97

    37 $575.63 $501.63 $74.00 $12,368.34

    38 $575.63 $504.51 $71.12 $11,863.83

    39 $575.63 $507.41 $68.22 $11,356.42

    40 $575.63 $510.33 $65.30 $10,846.09

    41 $575.63 $513.26 $62.37 $10,332.82

    42 $575.63 $516.22 $59.41 $9,816.61

    43 $575.63 $519.18 $56.45 $9,297.4244 $575.63 $522.17 $53.46 $8,775.25

    45 $575.63 $525.17 $50.46 $8,250.08

    46 $575.63 $528.19 $47.44 $7,721.89

    47 $575.63 $531.23 $44.40 $7,190.66

    48 $575.63 $534.28 $41.35 $6,656.38

    49 $575.63 $537.36 $38.27 $6,119.02

    50 $575.63 $540.45 $35.18 $5,578.58

    51 $575.63 $543.55 $32.08 $5,035.02

    52 $575.63 $546.68 $28.95 $4,488.34

    53 $575.63 $549.82 $25.81 $3,938.5254 $575.63 $552.98 $22.65 $3,385.54

    55 $575.63 $556.16 $19.47 $2,829.37

    56 $575.63 $559.36 $16.27 $2,270.01

    57 $575.63 $562.58 $13.05 $1,707.44

    58 $575.63 $565.81 $9.82 $1,141.62

    59 $575.63 $569.07 $6.56 $572.56

    60 $575.63 $572.34 $3.29 $0.22

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    Main formula for bond price Bond price from today untill mat

    FV $1,000 Years to Maturity (N) Price of Bond (PV)

    Coupon Rate 7.875% 19 $674.68

    YTM 12.40% 18 $679.59

    Years to Maturity 19 17 $685.10

    Payment Freq 1 16 $691.31

    15 $698.28PV(price) of bon $674.68 14 $706.12

    13 $714.92

    Formula used for bond price calc 12 $724.82

    11 $735.95

    10 $748.46

    9 $762.52

    8 $778.32

    7 $796.08

    6 $816.05

    5 $838.49

    4 $863.71

    3 $892.06

    2 $923.93

    1 $959.74

    0 $1,000.00

    Question clearly indicated topresent the price of the bond,i.e. one bond with face value of1,000$, thus we calculated prices

    and yields per 1 bond of themany they issued.

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    aphical representation of bond prices over time to matuirty (19-

    19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0600

    650

    700

    750

    800

    850

    900

    950

    1000

    Bond Price Over Time to Maturity

    Price of Bond(PV)

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    SP500 AVERAGE RETURNSDate Open High Low Close Volume dj Close

    6/1/2011 1345.2 1345.2 1313.71 1314.55 ### 1314.55

    5/2/2011 1365.21 1370.58 1311.8 1345.2 ### 1345.2

    4/1/2011 1329.48 1364.56 1294.7 1363.61 ### 1363.61

    3/1/2011 1328.64 1332.28 1249.05 1325.83 ### 1325.83

    2/1/2011 1289.14 1344.07 1289.14 1327.22 ### 1327.221/3/2011 1257.62 1302.67 1257.62 1286.12 ### 1286.12

    12/1/2010 1186.6 1262.6 1186.6 1257.64 ### 1257.64

    11/1/2010 1185.71 1227.08 1173 1180.55 ### 1180.55

    10/1/2010 1143.49 1196.14 1131.87 1183.26 ### 1183.26

    9/1/2010 1049.72 1157.16 1049.72 1141.2 ### 1141.2

    8/2/2010 1107.53 1129.24 1039.7 1049.33 ### 1049.33

    7/1/2010 1031.1 1120.95 1010.91 1101.6 ### 1101.6

    6/1/2010 1087.3 1131.23 1028.33 1030.71 ### 1030.71

    5/3/2010 1188.58 1205.13 1040.78 1089.41 ### 1089.41

    4/1/2010 1171.23 1219.8 1170.69 1186.69 ### 1186.69

    3/1/2010 1105.36 1180.69 1105.36 1169.43 ### 1169.43

    2/1/2010 1073.89 1112.42 1044.5 1104.49 ### 1104.49

    1/4/2010 1116.56 1150.45 1071.59 1073.87 ### 1073.87

    12/1/2009 1098.89 1130.38 1085.89 1115.1 ### 1115.1

    11/2/2009 1036.18 1113.69 1029.38 1095.63 ### 1095.63

    10/1/2009 1054.91 1101.36 1019.95 1036.19 ### 1036.19

    9/1/2009 1019.52 1080.15 991.97 1057.08 ### 1057.08

    8/3/2009 990.22 1039.47 978.51 1020.62 ### 1020.62

    7/1/2009 920.82 996.68 869.32 987.48 ### 987.48

    6/1/2009 923.26 956.23 888.86 919.32 ### 919.32

    5/1/2009 872.74 930.17 866.1 919.14 ### 919.144/1/2009 793.59 888.7 783.32 872.81 ### 872.81

    3/2/2009 729.57 832.98 666.79 797.87 ### 797.87

    2/2/2009 823.09 875.01 734.52 735.09 ### 735.09

    1/2/2009 902.99 943.85 804.3 825.88 ### 825.88

    12/1/2008 888.61 918.85 815.69 903.25 ### 903.25

    11/3/2008 968.67 1007.51 741.02 896.24 ### 896.24

    10/1/2008 1164.17 1167.03 839.8 968.75 ### 968.75

    9/2/2008 1287.83 1303.04 1106.42 1166.36 ### 1166.36

    8/1/2008 1269.42 1313.15 1247.45 1282.83 ### 1282.83

    7/1/2008 1276.69 1292.17 1200.44 1267.38 ### 1267.386/2/2008 1399.62 1404.05 1272 1280 ### 1280

    5/1/2008 1385.97 1440.24 1373.07 1400.38 ### 1400.38

    4/1/2008 1326.41 1404.57 1324.35 1385.59 ### 1385.59

    3/3/2008 1330.45 1359.68 1256.98 1322.7 ### 1322.7

    2/1/2008 1378.6 1396.02 1316.75 1330.63 ### 1330.63

    1/2/2008 1467.97 1471.77 1270.05 1378.55 ### 1378.55

    12/3/2007 1479.63 1523.57 1435.65 1468.36 ### 1468.36

    11/1/2007 1545.79 1545.79 1406.1 1481.14 ### 1481.14

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    10/1/2007 1527.29 1576.09 1489.56 1549.38 ### 1549.38

    9/4/2007 1473.96 1538.74 1439.29 1526.75 ### 1526.75

    8/1/2007 1455.18 1503.89 1370.6 1473.99 ### 1473.99

    7/2/2007 1504.66 1555.9 1454.25 1455.27 ### 1455.27

    6/1/2007 1530.62 1540.56 1484.18 1503.35 ### 1503.35

    5/1/2007 1482.37 1535.56 1476.7 1530.62 ### 1530.62

    4/2/2007 1420.83 1498.02 1416.37 1482.37 ### 1482.37

    3/1/2007 1406.8 1438.89 1363.98 1420.86 ### 1420.862/1/2007 1437.9 1461.57 1389.42 1406.82 ### 1406.82

    1/3/2007 1418.03 1441.61 1403.97 1438.24 ### 1438.24

    12/1/2006 1400.63 1431.81 1385.93 1418.3 ### 1418.3

    11/1/2006 1377.76 1407.89 1360.98 1400.63 ### 1400.63

    10/2/2006 1335.82 1389.45 1327.1 1377.94 ### 1377.94

    9/1/2006 1303.8 1340.28 1290.93 1335.85 ### 1335.85

    8/1/2006 1278.53 1306.74 1261.3 1303.82 ### 1303.82

    7/3/2006 1270.06 1280.42 1224.54 1276.66 ### 1276.66

    6/1/2006 1270.05 1290.68 1219.29 1270.2 ### 1270.2

    5/1/2006 1310.61 1326.7 1245.34 1270.09 ### 1270.094/3/2006 1302.88 1318.16 1280.74 1310.61 ### 1310.61

    3/1/2006 1280.66 1310.88 1268.42 1294.87 ### 1294.87

    2/1/2006 1280.08 1297.57 1253.61 1280.66 ### 1280.66

    1/3/2006 1248.29 1294.9 1245.74 1280.08 ### 1280.08

    12/1/2005 1249.48 1275.8 1246.59 1248.29 ### 1248.29

    11/1/2005 1207.01 1270.64 1201.07 1249.48 ### 1249.48

    10/3/2005 1228.81 1233.34 1168.2 1207.01 ### 1207.01

    9/1/2005 1220.33 1243.13 1205.35 1228.81 ### 1228.81

    8/1/2005 1234.18 1245.86 1201.07 1220.33 ### 1220.33

    7/1/2005 1191.33 1245.15 1183.55 1234.18 ### 1234.186/1/2005 1191.5 1219.59 1188.3 1191.33 ### 1191.33

    5/2/2005 1156.85 1199.56 1146.18 1191.5 ### 1191.5

    4/1/2005 1180.59 1191.88 1136.15 1156.85 ### 1156.85

    3/1/2005 1203.6 1229.11 1163.69 1180.59 ### 1180.59

    2/1/2005 1181.27 1212.44 1180.95 1203.6 ### 1203.6

    1/3/2005 1211.92 1217.8 1163.75 1181.27 ### 1181.27

    12/1/2004 1173.78 1217.33 1173.78 1211.92 ### 1211.92

    11/1/2004 1130.2 1188.46 1127.6 1173.82 ### 1173.82

    10/1/2004 1114.58 1142.05 1090.29 1130.2 ### 1130.2

    9/1/2004 1104.24 1131.54 1099.18 1114.58 ### 1114.58

    8/2/2004 1101.72 1109.68 1060.72 1104.24 ### 1104.24

    7/1/2004 1140.84 1140.84 1078.78 1101.72 ### 1101.72

    6/1/2004 1120.68 1146.34 1113.32 1140.84 ### 1140.84

    5/3/2004 1107.3 1127.74 1076.32 1120.68 ### 1120.68

    4/1/2004 1126.21 1150.57 1107.23 1107.3 ### 1107.3

    3/1/2004 1144.94 1163.23 1087.16 1126.21 ### 1126.21

    2/2/2004 1131.13 1158.98 1124.44 1144.94 ### 1144.94

    1/2/2004 1111.92 1155.38 1105.08 1131.13 ### 1131.13

    12/1/2003 1058.2 1112.56 1053.41 1111.92 ### 1111.92

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    11/3/2003 1050.71 1063.65 1031.2 1058.2 ### 1058.2

    10/1/2003 995.97 1053.79 995.97 1050.71 ### 1050.71

    9/2/2003 1008.01 1040.29 990.36 995.97 ### 995.97

    8/1/2003 990.31 1011.01 960.84 1008.01 ### 1008.01

    7/1/2003 974.5 1015.41 962.1 990.31 ### 990.31

    6/2/2003 963.59 1015.33 963.59 974.5 ### 974.5

    5/1/2003 916.92 965.38 902.83 963.59 ### 963.59

    4/1/2003 848.18 924.24 847.85 916.92 ### 916.923/3/2003 841.15 895.9 788.9 848.18 ### 848.18

    2/3/2003 855.7 864.64 806.29 841.15 ### 841.15

    1/2/2003 879.82 935.05 840.34 855.7 ### 855.7

    12/2/2002 936.31 954.28 869.45 879.82 ### 879.82

    11/1/2002 885.76 941.82 872.05 936.31 ### 936.31

    10/1/2002 815.28 907.44 768.63 885.76 ### 885.76

    9/3/2002 916.07 924.02 800.2 815.28 ### 815.28

    8/1/2002 911.62 965 833.44 916.07 ### 916.07

    7/1/2002 989.82 994.46 775.68 911.62 ### 911.62

    6/3/2002 1067.14 1070.74 952.92 989.82 ### 989.825/1/2002 1076.92 1106.59 1048.96 1067.14 ### 1067.14

    4/1/2002 1147.39 1147.84 1063.46 1076.92 ### 1076.92

    3/1/2002 1106.73 1173.94 1106.73 1147.39 ### 1147.39

    2/1/2002 1130.2 1130.2 1074.36 1106.73 ### 1106.73

    1/2/2002 1148.08 1176.97 1081.66 1130.2 ### 1130.2

    12/3/2001 1139.45 1173.62 1114.53 1148.08 ### 1148.08

    11/1/2001 1059.78 1163.38 1054.31 1139.45 ### 1139.45

    10/1/2001 1040.94 1110.61 1026.76 1059.78 ### 1059.78

    9/4/2001 1133.58 1155.4 944.75 1040.94 ### 1040.94

    8/1/2001 1211.23 1226.27 1124.87 1133.58 ### 1133.587/2/2001 1224.42 1239.78 1165.54 1211.23 ### 1211.23

    6/1/2001 1255.82 1286.62 1203.03 1224.38 ### 1224.38

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    MICROSOFT AVERAGE RETURNSturn by month avg. Date Open High Low Close Volume

    -2.28% 6/1/2011 24.99 25.1 24.37 24.43 ###

    -1.35% 5/2/2011 25.94 26.25 24.03 25.01 ###

    2.85% 4/1/2011 25.53 26.87 24.72 25.92 ###

    -0.10% 3/1/2011 26.6 26.78 24.68 25.39 ###

    3.20% 2/1/2011 27.8 28.34 26.43 26.58 ###2.26% 1/3/2011 28.05 29.46 27.42 27.73 ###

    6.53% 12/1/2010 25.57 28.4 25.56 27.91 ###

    -0.23% 11/1/2010 26.88 28.87 24.93 25.26 ###

    3.69% 10/1/2010 24.77 27.2 23.78 26.67 ###

    8.76% 9/1/2010 23.67 25.53 23.54 24.49 ###

    -4.74% 8/2/2010 25.99 26.38 23.32 23.47 ###

    6.88% 7/1/2010 23.09 26.41 22.73 25.81 ###

    -5.39% 6/1/2010 25.53 26.93 22.95 23.01 ###

    -8.20% 5/3/2010 30.67 31.06 24.56 25.8 ###

    1.48% 4/1/2010 29.35 31.58 28.62 30.54 ###

    5.88% 3/1/2010 28.77 30.57 28.24 29.29 ###

    2.85% 2/1/2010 28.39 29.03 27.57 28.67 ###

    -3.70% 1/4/2010 30.62 31.24 27.66 28.18 ###

    1.78% 12/1/2009 29.52 31.5 29.25 30.48 ###

    5.74% 11/2/2009 27.7 30.14 27.41 29.41 ###

    -1.98% 10/1/2009 25.41 29.35 24.43 27.73 ###

    3.57% 9/1/2009 24.35 26.25 23.76 25.72 ###

    3.36% 8/3/2009 23.82 25.49 23.03 24.65 ###

    7.41% 7/1/2009 24.05 25.72 22 23.52 ###

    0.02% 6/1/2009 21 24.34 20.86 23.77 ###

    5.31% 5/1/2009 20.19 20.94 19.01 20.89 ###9.39% 4/1/2009 18.23 21.2 18.18 20.26 ###

    8.54% 3/2/2009 15.96 18.88 14.87 18.37 ###

    -10.99% 2/2/2009 17.03 19.93 16.1 16.15 ###

    -8.57% 1/2/2009 19.53 21 16.75 17.1 ###

    0.78% 12/1/2008 19.88 21.25 18.47 19.44 ###

    -7.48% 11/3/2008 22.48 23.66 17.5 20.22 ###

    -16.94% 10/1/2008 26.38 27.47 20.65 22.33 ###

    -9.08% 9/2/2008 27.67 27.76 23.5 26.69 ###

    1.22% 8/1/2008 25.92 28.5 25.07 27.29 ###

    -0.99% 7/1/2008 27.27 27.91 24.87 25.72 ###-8.60% 6/2/2008 28.24 29.57 27.11 27.51 ###

    1.07% 5/1/2008 28.5 30.53 27.95 28.32 ###

    4.75% 4/1/2008 28.83 32.1 27.93 28.52 ###

    -0.60% 3/3/2008 27.24 29.59 26.87 28.38 ###

    -3.48% 2/1/2008 31.06 33.25 27.02 27.2 ###

    -6.12% 1/2/2008 35.79 35.96 31.04 32.6 ###

    -0.86% 12/3/2007 33.5 36.72 32.63 35.6 ###

    -4.40% 11/1/2007 36.53 37.5 32.68 33.6 ###

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    1.48% 10/1/2007 29.46 37 29.29 36.81 ###

    3.58% 9/4/2007 28.5 29.85 28.27 29.46 ###

    1.29% 8/1/2007 28.95 30.1 27.51 28.73 ###

    -3.20% 7/2/2007 29.67 31.84 28.95 28.99 ###

    -1.78% 6/1/2007 30.79 30.9 29.04 29.47 ###

    3.25% 5/1/2007 29.94 31.16 29.9 30.69 ###

    4.33% 4/2/2007 27.89 30.74 27.56 29.94 ###

    1.00% 3/1/2007 27.82 28.55 26.6 27.87 ###-2.18% 2/1/2007 30.84 30.94 27.79 28.17 ###

    1.41% 1/3/2007 29.91 31.48 29.4 30.86 ###

    1.26% 12/1/2006 29.23 30.26 28.8 29.86 ###

    1.65% 11/1/2006 28.78 30 28.58 29.36 ###

    3.15% 10/2/2006 27.32 28.85 27.15 28.71 ###

    2.46% 9/1/2006 25.89 27.52 25.39 27.35 ###

    2.13% 8/1/2006 24.02 26.25 23.85 25.7 ###

    0.51% 7/3/2006 23.53 24.6 22.23 24.06 ###

    0.01% 6/1/2006 22.74 23.65 21.46 23.3 ###

    -3.09% 5/1/2006 24.32 25 22.45 22.65 ###1.22% 4/3/2006 27.67 27.94 24 24.15 ###

    1.11% 3/1/2006 26.98 28.22 26.62 27.21 ###

    0.05% 2/1/2006 27.96 28.07 26.34 26.87 ###

    2.55% 1/3/2006 26.25 28.38 26.1 28.15 ###

    -0.10% 12/1/2005 27.73 28.1 26.1 26.15 ###

    3.52% 11/1/2005 25.61 28.25 25.61 27.68 ###

    -1.77% 10/3/2005 25.71 25.8 24.25 25.7 ###

    0.69% 9/1/2005 27.38 27.39 25.12 25.73 ###

    -1.12% 8/1/2005 25.81 27.94 25.76 27.38 ###

    3.60% 7/1/2005 24.85 26.48 24.5 25.61 ###-0.01% 6/1/2005 25.73 26 24.82 24.84 ###

    3.00% 5/2/2005 25.23 26.09 24.64 25.8 ###

    -2.01% 4/1/2005 24.24 25.45 23.94 25.3 ###

    -1.91% 3/1/2005 25.19 25.79 23.82 24.17 ###

    1.89% 2/1/2005 26.25 26.5 25.13 25.16 ###

    -2.53% 1/3/2005 26.8 27.1 25.64 26.28 ###

    3.25% 12/1/2004 26.95 27.44 26.68 26.72 ###

    3.86% 11/1/2004 28.16 30.2 26.1 26.81 ###

    1.40% 10/1/2004 27.82 28.89 27.55 27.97 ###

    0.94% 9/1/2004 27.23 27.79 26.74 27.65 ###

    0.23% 8/2/2004 28.27 28.55 26.85 27.3 ###

    -3.43% 7/1/2004 28.7 29.89 27.25 28.49 ###

    1.80% 6/1/2004 26.13 28.8 25.86 28.56 ###

    1.21% 5/3/2004 26.19 26.6 25.42 26.23 ###

    -1.68% 4/1/2004 24.95 27.72 24.85 26.13 ###

    -1.64% 3/1/2004 26.63 26.72 24.01 24.93 ###

    1.22% 2/2/2004 27.61 27.8 26.35 26.53 ###

    1.73% 1/2/2004 27.58 28.83 27.26 27.65 ###

    5.08% 12/1/2003 25.9 27.55 25.5 27.37 ###

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    0.71% 11/3/2003 26.35 26.75 24.84 25.71 ###

    5.50% 10/1/2003 28.03 29.46 25.91 26.14 ###

    -1.19% 9/2/2003 26.7 30 26.47 27.8 ###

    1.79% 8/1/2003 26.33 26.95 25.43 26.52 ###

    1.62% 7/1/2003 25.59 27.81 25.39 26.41 ###

    1.13% 6/2/2003 24.98 26.51 23.6 25.64 ###

    5.09% 5/1/2003 25.54 26.5 23.89 24.61 ###

    8.10% 4/1/2003 24.46 26.43 23.95 25.57 ###0.84% 3/3/2003 24.02 26.8 22.55 24.21 ###

    -1.70% 2/3/2003 47.93 49.1 23.3 23.7 ###

    -2.74% 1/2/2003 52.3 57.32 47.03 47.46 ###

    -6.03% 12/2/2002 58.65 58.96 51.26 51.7 ###

    5.71% 11/1/2002 52.43 58.64 51.9 57.68 ###

    8.64% 10/1/2002 44.32 54.07 43.19 53.47 ###

    -11.00% 9/3/2002 48.52 51.1 43.11 43.74 ###

    0.49% 8/1/2002 47.58 53.45 43.8 49.08 ###

    -7.90% 7/1/2002 54.12 54.93 41.41 47.98 ###

    -7.25% 6/3/2002 50.99 56.44 49.17 54.7 ###-0.91% 5/1/2002 52.16 56.44 48.35 50.91 ###

    -6.14% 4/1/2002 59.83 60.4 51.44 52.26 ###

    3.67% 3/1/2002 59.05 65 58.31 60.31 ###

    -2.08% 2/1/2002 64.15 64.5 57.15 58.34 ###

    -1.56% 1/2/2002 66.65 70.62 61.33 63.71 ###

    0.76% 12/3/2001 63.83 69.89 63.8 66.25 ###

    7.52% 11/1/2001 60.08 68.34 59.6 64.21 ###

    1.81% 10/1/2001 50.94 63.63 50.41 58.15 ###

    -8.17% 9/4/2001 57.19 59.08 47.5 51.17 ###

    -6.41% 8/1/2001 66.8 67.54 56.3 57.05 ###-1.07% 7/2/2001 72.05 73.15 64.2 66.19 ###

    not available 6/1/2001 69.6 76.15 66.01 73 ###

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    Adj Close turn by month avg.

    24.43 -2.32%

    25.01 -2.87%

    25.75 2.10%

    25.22 -4.51%

    26.41 -3.58%27.39 -0.65%

    27.57 10.50%

    24.95 -4.70%

    26.18 8.90%

    24.04 4.34%

    23.04 -8.57%

    25.2 12.15%

    22.47 -10.80%

    25.19 -15.16%

    29.69 4.29%

    28.47 2.15%

    27.87 2.24%

    27.26 -7.56%

    29.49 3.66%

    28.45 6.51%

    26.71 7.83%

    24.77 4.34%

    23.74 5.37%

    22.53 -1.05%

    22.77 13.79%

    20.01 3.79%19.28 10.30%

    17.48 13.73%

    15.37 -4.95%

    16.17 -12.02%

    18.38 -3.82%

    19.11 -8.87%

    20.97 -16.32%

    25.06 -2.19%

    25.62 6.53%

    24.05 -6.53%25.73 -2.87%

    26.49 -0.34%

    26.58 0.53%

    26.44 4.30%

    25.35 -16.23%

    30.26 -8.41%

    33.04 5.93%

    31.19 -8.40%

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    34.05 24.95%

    27.25 2.52%

    26.58 -0.56%

    26.73 -1.62%

    27.17 -3.96%

    28.29 2.84%

    27.51 7.42%

    25.61 -1.08%25.89 -8.39%

    28.26 3.37%

    27.34 1.67%

    26.89 2.63%

    26.2 4.97%

    24.96 6.44%

    23.45 7.18%

    21.88 3.26%

    21.19 2.86%

    20.6 -5.81%21.87 -11.28%

    24.65 1.27%

    24.34 -4.21%

    25.41 7.62%

    23.61 -5.52%

    24.99 8.04%

    23.13 -0.13%

    23.16 -6.01%

    24.64 7.22%

    22.98 3.10%22.29 -3.71%

    23.15 2.30%

    22.63 4.67%

    21.62 -3.95%

    22.51 -3.97%

    23.44 -1.64%

    23.83 -0.33%

    23.91 6.84%

    22.38 1.18%

    22.12 1.28%

    21.84 -3.92%

    22.73 -0.26%

    22.79 8.89%

    20.93 0.38%

    20.85 4.83%

    19.89 -6.05%

    21.17 -4.03%

    22.06 1.01%

    21.84 6.48%

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    20.51 -1.63%

    20.85 -5.49%

    22.06 4.85%

    21.04 0.43%

    20.95 3.00%

    20.34 4.20%

    19.52 -3.79%

    20.29 5.62%19.21 2.18%

    18.8 0.16%

    18.77 -8.17%

    20.44 -10.39%

    22.81 7.90%

    21.14 22.20%

    17.3 -10.87%

    19.41 2.32%

    18.97 -12.30%

    21.63 7.45%20.13 -2.57%

    20.66 -13.38%

    23.85 3.38%

    23.07 -8.42%

    25.19 -3.85%

    26.2 3.19%

    25.39 10.44%

    22.99 13.64%

    20.23 -10.33%

    22.56 -13.79%26.17 -9.32%

    28.86

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    STANDARD DEVIATION COMPARIDate MS retur SP500 return Avg MS return 0.13%

    6/1/2011 -2.32% -2.28% AVG SP500 retu 0.17%

    5/2/2011 -2.87% -1.35%

    4/1/2011 2.10% 2.85% St. Deviation M 7.42%

    3/1/2011 -4.51% -0.10% St. Deviation S 4.57%

    2/1/2011 -3.58% 3.20% Interpretation:1/3/2011 -0.65% 2.26%

    12/1/2010 10.50% 6.53%

    11/1/2010 -4.70% -0.23%

    10/1/2010 8.90% 3.69%

    9/1/2010 4.34% 8.76%

    8/2/2010 -8.57% -4.74%

    7/1/2010 12.15% 6.88%

    6/1/2010 -10.80% -5.39%

    5/3/2010 -15.16% -8.20%

    4/1/2010 4.29% 1.48%

    3/1/2010 2.15% 5.88%

    2/1/2010 2.24% 2.85%

    1/4/2010 -7.56% -3.70%

    12/1/2009 3.66% 1.78%

    11/2/2009 6.51% 5.74%

    10/1/2009 7.83% -1.98%

    9/1/2009 4.34% 3.57%

    8/3/2009 5.37% 3.36%

    7/1/2009 -1.05% 7.41%

    6/1/2009 13.79% 0.02%

    5/1/2009 3.79% 5.31%4/1/2009 10.30% 9.39%

    3/2/2009 13.73% 8.54%

    2/2/2009 -4.95% -10.99%

    1/2/2009 -12.02% -8.57%

    12/1/2008 -3.82% 0.78%

    11/3/2008 -8.87% -7.48%

    10/1/2008 -16.32% -16.94%

    9/2/2008 -2.19% -9.08%

    8/1/2008 6.53% 1.22%

    7/1/2008 -6.53% -0.99%6/2/2008 -2.87% -8.60%

    5/1/2008 -0.34% 1.07%

    4/1/2008 0.53% 4.75%

    3/3/2008 4.30% -0.60%

    2/1/2008 -16.23% -3.48%

    1/2/2008 -8.41% -6.12%

    12/3/2007 5.93% -0.86%

    11/1/2007 -8.40% -4.40%

    Higher standard deviation implies hirisk of stock or portfolio. Comparingdeviation of Microsoft and SP500, it iSP500 has a more favorable relationrisk and return, with lover risk thandeviation vs 0.074) and better return0.13). However, this is to be expecteportfolio of stocks and portfolios usurisk comparing to individual stock.

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    10/1/2007 24.95% 1.48%

    9/4/2007 2.52% 3.58%

    8/1/2007 -0.56% 1.29%

    7/2/2007 -1.62% -3.20%

    6/1/2007 -3.96% -1.78%

    5/1/2007 2.84% 3.25%

    4/2/2007 7.42% 4.33%

    3/1/2007 -1.08% 1.00%2/1/2007 -8.39% -2.18%

    1/3/2007 3.37% 1.41%

    12/1/2006 1.67% 1.26%

    11/1/2006 2.63% 1.65%

    10/2/2006 4.97% 3.15%

    9/1/2006 6.44% 2.46%

    8/1/2006 7.18% 2.13%

    7/3/2006 3.26% 0.51%

    6/1/2006 2.86% 0.01%

    5/1/2006 -5.81% -3.09%4/3/2006 -11.28% 1.22%

    3/1/2006 1.27% 1.11%

    2/1/2006 -4.21% 0.05%

    1/3/2006 7.62% 2.55%

    12/1/2005 -5.52% -0.10%

    11/1/2005 8.04% 3.52%

    10/3/2005 -0.13% -1.77%

    9/1/2005 -6.01% 0.69%

    8/1/2005 7.22% -1.12%

    7/1/2005 3.10% 3.60%6/1/2005 -3.71% -0.01%

    5/2/2005 2.30% 3.00%

    4/1/2005 4.67% -2.01%

    3/1/2005 -3.95% -1.91%

    2/1/2005 -3.97% 1.89%

    1/3/2005 -1.64% -2.53%

    12/1/2004 -0.33% 3.25%

    11/1/2004 6.84% 3.86%

    10/1/2004 1.18% 1.40%

    9/1/2004 1.28% 0.94%

    8/2/2004 -3.92% 0.23%

    7/1/2004 -0.26% -3.43%

    6/1/2004 8.89% 1.80%

    5/3/2004 0.38% 1.21%

    4/1/2004 4.83% -1.68%

    3/1/2004 -6.05% -1.64%

    2/2/2004 -4.03% 1.22%

    1/2/2004 1.01% 1.73%

    12/1/2003 6.48% 5.08%

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    11/3/2003 -1.63% 0.71%

    10/1/2003 -5.49% 5.50%

    9/2/2003 4.85% -1.19%

    8/1/2003 0.43% 1.79%

    7/1/2003 3.00% 1.62%

    6/2/2003 4.20% 1.13%

    5/1/2003 -3.79% 5.09%

    4/1/2003 5.62% 8.10%3/3/2003 2.18% 0.84%

    2/3/2003 0.16% -1.70%

    1/2/2003 -8.17% -2.74%

    12/2/2002 -10.39% -6.03%

    11/1/2002 7.90% 5.71%

    10/1/2002 22.20% 8.64%

    9/3/2002 -10.87% -11.00%

    8/1/2002 2.32% 0.49%

    7/1/2002 -12.30% -7.90%

    6/3/2002 7.45% -7.25%5/1/2002 -2.57% -0.91%

    4/1/2002 -13.38% -6.14%

    3/1/2002 3.38% 3.67%

    2/1/2002 -8.42% -2.08%

    1/2/2002 -3.85% -1.56%

    12/3/2001 3.19% 0.76%

    11/1/2001 10.44% 7.52%

    10/1/2001 13.64% 1.81%

    9/4/2001 -10.33% -8.17%

    8/1/2001 -13.79% -6.41%7/2/2001 -9.32% -1.07%

    6/1/2001 n/a not available

    0.17%

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    ON AND AVG RETURNS

    her standalonehe standardclear that that

    hip betweenicrosoft (0.045s (0.17 vsd as SP500 is ally have lower

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    PORTFOLIO RETURNS, WEIGHTS, STANDARD Dportfolio 1 2 3 4 5

    SP weight 100% 95% 90% 85% 80%

    MS weight 0% 5% 10% 15% 20%

    Month MS returnSP500 return

    6/1/2011 -2.32% -2.28% -2.28% -2.28% -2.28% -2.28% -2.29%

    5/2/2011 -2.87% -1.35% -1.35% -1.43% -1.50% -1.58% -1.65%4/1/2011 2.10% 2.85% 2.85% 2.81% 2.77% 2.74% 2.70%

    3/1/2011 -4.51% -0.10% -0.10% -0.32% -0.54% -0.76% -0.98%

    2/1/2011 -3.58% 3.20% 3.20% 2.86% 2.52% 2.18% 1.84%

    1/3/2011 -0.65% 2.26% 2.26% 2.12% 1.97% 1.83% 1.68%

    12/1/2010 10.50% 6.53% 6.53% 6.73% 6.93% 7.13% 7.32%

    11/1/2010 -4.70% -0.23% -0.23% -0.45% -0.68% -0.90% -1.12%

    10/1/2010 8.90% 3.69% 3.69% 3.95% 4.21% 4.47% 4.73%

    9/1/2010 4.34% 8.76% 8.76% 8.53% 8.31% 8.09% 7.87%

    8/2/2010 -8.57% -4.74% -4.74% -4.94% -5.13% -5.32% -5.51%

    7/1/2010 12.15% 6.88% 6.88% 7.14% 7.40% 7.67% 7.93%

    6/1/2010 -10.80% -5.39% -5.39% -5.66% -5.93% -6.20% -6.47%

    5/3/2010 -15.16% -8.20% -8.20% -8.55% -8.89% -9.24% -9.59%

    4/1/2010 4.29% 1.48% 1.48% 1.62% 1.76% 1.90% 2.04%

    3/1/2010 2.15% 5.88% 5.88% 5.69% 5.51% 5.32% 5.13%

    2/1/2010 2.24% 2.85% 2.85% 2.82% 2.79% 2.76% 2.73%

    1/4/2010 -7.56% -3.70% -3.70% -3.89% -4.08% -4.28% -4.47%

    12/1/2009 3.66% 1.78% 1.78% 1.87% 1.96% 2.06% 2.15%

    11/2/2009 6.51% 5.74% 5.74% 5.78% 5.81% 5.85% 5.89%

    10/1/2009 7.83% -1.98% -1.98% -1.49% -1.00% -0.50% -0.01%

    9/1/2009 4.34% 3.57% 3.57% 3.61% 3.65% 3.69% 3.73%

    8/3/2009 5.37% 3.36% 3.36% 3.46% 3.56% 3.66% 3.76%7/1/2009 -1.05% 7.41% 7.41% 6.99% 6.57% 6.14% 5.72%

    6/1/2009 13.79% 0.02% 0.02% 0.71% 1.40% 2.09% 2.77%

    5/1/2009 3.79% 5.31% 5.31% 5.23% 5.16% 5.08% 5.00%

    4/1/2009 10.30% 9.39% 9.39% 9.44% 9.48% 9.53% 9.57%

    3/2/2009 13.73% 8.54% 8.54% 8.80% 9.06% 9.32% 9.58%

    2/2/2009 -4.95% -10.99% -10.99% -10.69% -10.39% -10.09% -9.78%

    1/2/2009 -12.02% -8.57% -8.57% -8.74% -8.91% -9.08% -9.26%

    12/1/2008 -3.82% 0.78% 0.78% 0.55% 0.32% 0.09% -0.14%

    11/3/2008 -8.87% -7.48% -7.48% -7.55% -7.62% -7.69% -7.76%

    10/1/2008 -16.32% -16.94% -16.94% -16.91% -16.88% -16.85% -16.82%9/2/2008 -2.19% -9.08% -9.08% -8.73% -8.39% -8.05% -7.70%

    8/1/2008 6.53% 1.22% 1.22% 1.48% 1.75% 2.02% 2.28%

    7/1/2008 -6.53% -0.99% -0.99% -1.26% -1.54% -1.82% -2.09%

    6/2/2008 -2.87% -8.60% -8.60% -8.31% -8.02% -7.74% -7.45%

    5/1/2008 -0.34% 1.07% 1.07% 1.00% 0.93% 0.86% 0.79%

    4/1/2008 0.53% 4.75% 4.75% 4.54% 4.33% 4.12% 3.91%

    3/3/2008 4.30% -0.60% -0.60% -0.35% -0.11% 0.14% 0.38%

    2/1/2008 -16.23% -3.48% -3.48% -4.11% -4.75% -5.39% -6.03%

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    1/2/2008 -8.41% -6.12% -6.12% -6.23% -6.35% -6.46% -6.58%

    12/3/2007 5.93% -0.86% -0.86% -0.52% -0.18% 0.16% 0.50%

    11/1/2007 -8.40% -4.40% -4.40% -4.60% -4.80% -5.00% -5.20%

    10/1/2007 24.95% 1.48% 1.48% 2.66% 3.83% 5.00% 6.18%

    9/4/2007 2.52% 3.58% 3.58% 3.53% 3.47% 3.42% 3.37%

    8/1/2007 -0.56% 1.29% 1.29% 1.19% 1.10% 1.01% 0.92%

    7/2/2007 -1.62% -3.20% -3.20% -3.12% -3.04% -2.96% -2.88%

    6/1/2007 -3.96% -1.78% -1.78% -1.89% -2.00% -2.11% -2.22%5/1/2007 2.84% 3.25% 3.25% 3.23% 3.21% 3.19% 3.17%

    4/2/2007 7.42% 4.33% 4.33% 4.48% 4.64% 4.79% 4.95%

    3/1/2007 -1.08% 1.00% 1.00% 0.89% 0.79% 0.69% 0.58%

    2/1/2007 -8.39% -2.18% -2.18% -2.49% -2.80% -3.11% -3.42%

    1/3/2007 3.37% 1.41% 1.41% 1.50% 1.60% 1.70% 1.80%

    12/1/2006 1.67% 1.26% 1.26% 1.28% 1.30% 1.32% 1.34%

    11/1/2006 2.63% 1.65% 1.65% 1.70% 1.75% 1.79% 1.84%

    10/2/2006 4.97% 3.15% 3.15% 3.24% 3.33% 3.42% 3.51%

    9/1/2006 6.44% 2.46% 2.46% 2.66% 2.85% 3.05% 3.25%

    8/1/2006 7.18% 2.13% 2.13% 2.38% 2.63% 2.88% 3.14%7/3/2006 3.26% 0.51% 0.51% 0.65% 0.78% 0.92% 1.06%

    6/1/2006 2.86% 0.01% 0.01% 0.15% 0.29% 0.44% 0.58%

    5/1/2006 -5.81% -3.09% -3.09% -3.23% -3.36% -3.50% -3.63%

    4/3/2006 -11.28% 1.22% 1.22% 0.59% -0.03% -0.66% -1.28%

    3/1/2006 1.27% 1.11% 1.11% 1.12% 1.13% 1.13% 1.14%

    2/1/2006 -4.21% 0.05% 0.05% -0.17% -0.38% -0.59% -0.81%

    1/3/2006 7.62% 2.55% 2.55% 2.80% 3.05% 3.31% 3.56%

    12/1/2005 -5.52% -0.10% -0.10% -0.37% -0.64% -0.91% -1.18%

    11/1/2005 8.04% 3.52% 3.52% 3.74% 3.97% 4.20% 4.42%

    10/3/2005 -0.13% -1.77% -1.77% -1.69% -1.61% -1.53% -1.45%9/1/2005 -6.01% 0.69% 0.69% 0.36% 0.02% -0.31% -0.65%

    8/1/2005 7.22% -1.12% -1.12% -0.70% -0.29% 0.13% 0.55%

    7/1/2005 3.10% 3.60% 3.60% 3.57% 3.55% 3.52% 3.50%

    6/1/2005 -3.71% -0.01% -0.01% -0.20% -0.38% -0.57% -0.75%

    5/2/2005 2.30% 3.00% 3.00% 2.96% 2.93% 2.89% 2.86%

    4/1/2005 4.67% -2.01% -2.01% -1.68% -1.34% -1.01% -0.67%

    3/1/2005 -3.95% -1.91% -1.91% -2.01% -2.12% -2.22% -2.32%

    2/1/2005 -3.97% 1.89% 1.89% 1.60% 1.30% 1.01% 0.72%

    1/3/2005 -1.64% -2.53% -2.53% -2.48% -2.44% -2.40% -2.35%

    12/1/2004 -0.33% 3.25% 3.25% 3.07% 2.89% 2.71% 2.53%

    11/1/2004 6.84% 3.86% 3.86% 4.01% 4.16% 4.31% 4.45%

    10/1/2004 1.18% 1.40% 1.40% 1.39% 1.38% 1.37% 1.36%

    9/1/2004 1.28% 0.94% 0.94% 0.95% 0.97% 0.99% 1.01%

    8/2/2004 -3.92% 0.23% 0.23% 0.02% -0.19% -0.39% -0.60%

    7/1/2004 -0.26% -3.43% -3.43% -3.27% -3.11% -2.95% -2.80%

    6/1/2004 8.89% 1.80% 1.80% 2.15% 2.51% 2.86% 3.22%

    5/3/2004 0.38% 1.21% 1.21% 1.17% 1.13% 1.08% 1.04%

    4/1/2004 4.83% -1.68% -1.68% -1.35% -1.03% -0.70% -0.38%

    3/1/2004 -6.05% -1.64% -1.64% -1.86% -2.08% -2.30% -2.52%

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    2/2/2004 -4.03% 1.22% 1.22% 0.96% 0.70% 0.43% 0.17%

    1/2/2004 1.01% 1.73% 1.73% 1.69% 1.66% 1.62% 1.58%

    12/1/2003 6.48% 5.08% 5.08% 5.15% 5.22% 5.29% 5.36%

    11/3/2003 -1.63% 0.71% 0.71% 0.60% 0.48% 0.36% 0.24%

    10/1/2003 -5.49% 5.50% 5.50% 4.95% 4.40% 3.85% 3.30%

    9/2/2003 4.85% -1.19% -1.19% -0.89% -0.59% -0.29% 0.01%

    8/1/2003 0.43% 1.79% 1.79% 1.72% 1.65% 1.58% 1.52%

    7/1/2003 3.00% 1.62% 1.62% 1.69% 1.76% 1.83% 1.90%6/2/2003 4.20% 1.13% 1.13% 1.29% 1.44% 1.59% 1.75%

    5/1/2003 -3.79% 5.09% 5.09% 4.65% 4.20% 3.76% 3.31%

    4/1/2003 5.62% 8.10% 8.10% 7.98% 7.86% 7.73% 7.61%

    3/3/2003 2.18% 0.84% 0.84% 0.90% 0.97% 1.04% 1.10%

    2/3/2003 0.16% -1.70% -1.70% -1.61% -1.51% -1.42% -1.33%

    1/2/2003 -8.17% -2.74% -2.74% -3.01% -3.28% -3.56% -3.83%

    12/2/2002 -10.39% -6.03% -6.03% -6.25% -6.47% -6.69% -6.90%

    11/1/2002 7.90% 5.71% 5.71% 5.82% 5.93% 6.04% 6.15%

    10/1/2002 22.20% 8.64% 8.64% 9.32% 10.00% 10.68% 11.36%

    9/3/2002 -10.87% -11.00% -11.00% -11.00% -10.99% -10.98% -10.98%8/1/2002 2.32% 0.49% 0.49% 0.58% 0.67% 0.76% 0.85%

    7/1/2002 -12.30% -7.90% -7.90% -8.12% -8.34% -8.56% -8.78%

    6/3/2002 7.45% -7.25% -7.25% -6.51% -5.78% -5.04% -4.31%

    5/1/2002 -2.57% -0.91% -0.91% -0.99% -1.07% -1.16% -1.24%

    4/1/2002 -13.38% -6.14% -6.14% -6.50% -6.87% -7.23% -7.59%

    3/1/2002 3.38% 3.67% 3.67% 3.66% 3.64% 3.63% 3.62%

    2/1/2002 -8.42% -2.08% -2.08% -2.39% -2.71% -3.03% -3.34%

    1/2/2002 -3.85% -1.56% -1.56% -1.67% -1.79% -1.90% -2.02%

    12/3/2001 3.19% 0.76% 0.76% 0.88% 1.00% 1.12% 1.24%

    11/1/2001 10.44% 7.52% 7.52% 7.66% 7.81% 7.96% 8.10%10/1/2001 13.64% 1.81% 1.81% 2.40% 2.99% 3.58% 4.18%

    9/4/2001 -10.33% -8.17% -8.17% -8.28% -8.39% -8.50% -8.60%

    8/1/2001 -13.79% -6.41% -6.41% -6.78% -7.15% -7.52% -7.89%

    7/2/2001 -9.32% -1.07% -1.07% -1.49% -1.90% -2.31% -2.72%

    STDEV: 7.42% 4.57%

    ms sp500

    50.00% 50.00%

    SP weight 100% 95% 90% 85% 80%

    MS weight 0% 5% 10% 15% 20%

    Return on Portfolio 0.165% 0.164% 0.162% 0.160% 0.159%

    STANDARD D[p] regular formula 0.05 0.05 0.05 0.05 0.05

    return 0.165% 0.164% 0.162% 0.160% 0.159%

    TANDARD D[p] AYCA Formula 4.570% 4.168% 3.797% 3.465% 3.185%

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    ort o o we g t t at y e s sma est stan ardeviation is65% SP50035% MICROSOFT= 2.802%

    What that tells about the diversification is that thereis a mathematical point when adding an extra stockto the portfolio that the risk of the portfolio can reach

    its minimum even if the stock added has a muchhigher risk comparing to the portfolio.Diversification lowers portfolio risk.

    0.12

    0.13

    0.14

    0.15

    0.16

    0.17

    0.18

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    VIATION, GRAPH6 7 8 9 10 11 12 13 14

    75% 70% 65% 60% 55% 50% 45% 40% 35%

    25% 30% 35% 40% 45% 50% 55% 60% 65%

    -2.29% -2.29% -2.29% -2.29% -2.30% -2.30% -2.30% -2.30% -2.30%

    -1.73% -1.81% -1.88% -1.96% -2.04% -2.11% -2.19% -2.26% -2.34%2.66% 2.63% 2.59% 2.55% 2.51% 2.48% 2.44% 2.40% 2.36%

    -1.21% -1.43% -1.65% -1.87% -2.09% -2.31% -2.53% -2.75% -2.97%

    1.50% 1.16% 0.82% 0.49% 0.15% -0.19% -0.53% -0.87% -1.21%

    1.54% 1.39% 1.24% 1.10% 0.95% 0.81% 0.66% 0.51% 0.37%

    7.52% 7.72% 7.92% 8.12% 8.32% 8.52% 8.71% 8.91% 9.11%

    -1.35% -1.57% -1.79% -2.02% -2.24% -2.46% -2.69% -2.91% -3.13%

    4.99% 5.25% 5.51% 5.77% 6.03% 6.29% 6.55% 6.82% 7.08%

    7.65% 7.43% 7.21% 6.99% 6.77% 6.55% 6.33% 6.11% 5.89%

    -5.70% -5.89% -6.08% -6.28% -6.47% -6.66% -6.85% -7.04% -7.23%

    8.20% 8.46% 8.72% 8.99% 9.25% 9.51% 9.78% 10.04% 10.30%

    -6.74% -7.01% -7.28% -7.55% -7.82% -8.09% -8.36% -8.63% -8.90%

    -9.94% -10.29% -10.63% -10.98% -11.33% -11.68% -12.03% -12.37% -12.72%

    2.18% 2.32% 2.46% 2.60% 2.74% 2.88% 3.02% 3.16% 3.30%

    4.95% 4.76% 4.58% 4.39% 4.20% 4.02% 3.83% 3.64% 3.46%

    2.70% 2.67% 2.64% 2.61% 2.58% 2.54% 2.51% 2.48% 2.45%

    -4.66% -4.86% -5.05% -5.24% -5.44% -5.63% -5.82% -6.02% -6.21%

    2.25% 2.34% 2.43% 2.53% 2.62% 2.72% 2.81% 2.90% 3.00%

    5.93% 5.97% 6.01% 6.05% 6.09% 6.13% 6.16% 6.20% 6.24%

    0.48% 0.97% 1.46% 1.95% 2.44% 2.93% 3.42% 3.91% 4.40%

    3.76% 3.80% 3.84% 3.88% 3.92% 3.96% 3.99% 4.03% 4.07%

    3.86% 3.96% 4.06% 4.16% 4.26% 4.36% 4.46% 4.56% 4.67%5.30% 4.87% 4.45% 4.03% 3.60% 3.18% 2.76% 2.33% 1.91%

    3.46% 4.15% 4.84% 5.53% 6.22% 6.91% 7.60% 8.28% 8.97%

    4.93% 4.85% 4.78% 4.70% 4.62% 4.55% 4.47% 4.40% 4.32%

    9.62% 9.66% 9.71% 9.75% 9.80% 9.84% 9.89% 9.94% 9.98%

    9.84% 10.10% 10.36% 10.62% 10.87% 11.13% 11.39% 11.65% 11.91%

    -9.48% -9.18% -8.88% -8.57% -8.27% -7.97% -7.67% -7.37% -7.06%

    -9.43% -9.60% -9.78% -9.95% -10.12% -10.29% -10.47% -10.64% -10.81%

    -0.37% -0.60% -0.83% -1.06% -1.29% -1.52% -1.75% -1.98% -2.21%

    -7.83% -7.90% -7.97% -8.04% -8.11% -8.18% -8.25% -8.32% -8.39%

    -16.79% -16.76% -16.72% -16.69% -16.66% -16.63% -16.60% -16.57% -16.54%-7.36% -7.01% -6.67% -6.32% -5.98% -5.63% -5.29% -4.94% -4.60%

    2.55% 2.81% 3.08% 3.34% 3.61% 3.87% 4.14% 4.40% 4.67%

    -2.37% -2.65% -2.93% -3.20% -3.48% -3.76% -4.03% -4.31% -4.59%

    -7.16% -6.88% -6.59% -6.31% -6.02% -5.73% -5.45% -5.16% -4.87%

    0.72% 0.65% 0.58% 0.51% 0.43% 0.36% 0.29% 0.22% 0.15%

    3.70% 3.49% 3.28% 3.06% 2.85% 2.64% 2.43% 2.22% 2.01%

    0.63% 0.87% 1.12% 1.36% 1.61% 1.85% 2.10% 2.34% 2.59%

    -6.66% -7.30% -7.94% -8.58% -9.21% -9.85% -10.49% -11.13% -11.76%

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    -6.69% -6.81% -6.92% -7.04% -7.15% -7.27% -7.38% -7.49% -7.61%

    0.84% 1.18% 1.52% 1.85% 2.19% 2.53% 2.87% 3.21% 3.55%

    -5.40% -5.60% -5.80% -6.00% -6.20% -6.40% -6.60% -6.80% -7.00%

    7.35% 8.52% 9.70% 10.87% 12.04% 13.22% 14.39% 15.57% 16.74%

    3.31% 3.26% 3.21% 3.16% 3.10% 3.05% 3.00% 2.94% 2.89%

    0.82% 0.73% 0.64% 0.55% 0.45% 0.36% 0.27% 0.18% 0.09%

    -2.80% -2.72% -2.65% -2.57% -2.49% -2.41% -2.33% -2.25% -2.17%

    -2.33% -2.43% -2.54% -2.65% -2.76% -2.87% -2.98% -3.09% -3.20%3.15% 3.13% 3.11% 3.09% 3.07% 3.05% 3.02% 3.00% 2.98%

    5.10% 5.26% 5.41% 5.57% 5.72% 5.87% 6.03% 6.18% 6.34%

    0.48% 0.37% 0.27% 0.17% 0.06% -0.04% -0.15% -0.25% -0.35%

    -3.74% -4.05% -4.36% -4.67% -4.98% -5.29% -5.60% -5.91% -6.22%

    1.90% 1.99% 2.09% 2.19% 2.29% 2.39% 2.48% 2.58% 2.68%

    1.36% 1.39% 1.41% 1.43% 1.45% 1.47% 1.49% 1.51% 1.53%

    1.89% 1.94% 1.99% 2.04% 2.09% 2.14% 2.19% 2.24% 2.29%

    3.61% 3.70% 3.79% 3.88% 3.97% 4.06% 4.15% 4.24% 4.33%

    3.45% 3.65% 3.85% 4.05% 4.25% 4.45% 4.65% 4.85% 5.05%

    3.39% 3.64% 3.89% 4.15% 4.40% 4.65% 4.90% 5.16% 5.41%1.20% 1.33% 1.47% 1.61% 1.75% 1.88% 2.02% 2.16% 2.29%

    0.72% 0.87% 1.01% 1.15% 1.29% 1.44% 1.58% 1.72% 1.86%

    -3.77% -3.91% -4.04% -4.18% -4.31% -4.45% -4.59% -4.72% -4.86%

    -1.91% -2.53% -3.16% -3.78% -4.41% -5.03% -5.66% -6.28% -6.91%

    1.15% 1.16% 1.17% 1.18% 1.18% 1.19% 1.20% 1.21% 1.22%

    -1.02% -1.23% -1.44% -1.66% -1.87% -2.08% -2.30% -2.51% -2.72%

    3.82% 4.07% 4.32% 4.58% 4.83% 5.09% 5.34% 5.59% 5.85%

    -1.45% -1.72% -1.99% -2.27% -2.54% -2.81% -3.08% -3.35% -3.62%

    4.65% 4.88% 5.10% 5.33% 5.55% 5.78% 6.01% 6.23% 6.46%

    -1.36% -1.28% -1.20% -1.12% -1.03% -0.95% -0.87% -0.79% -0.71%-0.98% -1.32% -1.65% -1.99% -2.32% -2.66% -2.99% -3.33% -3.66%

    0.96% 1.38% 1.80% 2.22% 2.63% 3.05% 3.47% 3.89% 4.30%

    3.47% 3.45% 3.42% 3.40% 3.37% 3.35% 3.32% 3.30% 3.27%

    -0.94% -1.12% -1.31% -1.49% -1.68% -1.86% -2.05% -2.23% -2.42%

    2.82% 2.79% 2.75% 2.72% 2.68% 2.65% 2.61% 2.58% 2.54%

    -0.34% -0.01% 0.33% 0.66% 1.00% 1.33% 1.66% 2.00% 2.33%

    -2.42% -2.52% -2.63% -2.73% -2.83% -2.93% -3.03% -3.14% -3.24%

    0.43% 0.13% -0.16% -0.45% -0.75% -1.04% -1.33% -1.62% -1.92%

    -2.31% -2.26% -2.22% -2.17% -2.13% -2.08% -2.04% -1.99% -1.95%

    2.35% 2.17% 1.99% 1.81% 1.63% 1.46% 1.28% 1.10% 0.92%

    4.60% 4.75% 4.90% 5.05% 5.20% 5.35% 5.50% 5.65% 5.79%

    1.34% 1.33% 1.32% 1.31% 1.30% 1.29% 1.28% 1.27% 1.25%

    1.02% 1.04% 1.06% 1.07% 1.09% 1.11% 1.13% 1.14% 1.16%

    -0.81% -1.01% -1.22% -1.43% -1.64% -1.84% -2.05% -2.26% -2.47%

    -2.64% -2.48% -2.32% -2.16% -2.00% -1.85% -1.69% -1.53% -1.37%

    3.57% 3.93% 4.28% 4.63% 4.99% 5.34% 5.70% 6.05% 6.41%

    1.00% 0.96% 0.92% 0.88% 0.84% 0.80% 0.75% 0.71% 0.67%

    -0.05% 0.27% 0.60% 0.92% 1.25% 1.57% 1.90% 2.22% 2.55%

    -2.74% -2.96% -3.18% -3.40% -3.62% -3.84% -4.06% -4.28% -4.50%

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    -0.09% -0.36% -0.62% -0.88% -1.14% -1.41% -1.67% -1.93% -2.20%

    1.55% 1.51% 1.48% 1.44% 1.40% 1.37% 1.33% 1.30% 1.26%

    5.43% 5.50% 5.57% 5.64% 5.71% 5.78% 5.85% 5.92% 5.99%

    0.13% 0.01% -0.11% -0.22% -0.34% -0.46% -0.58% -0.69% -0.81%

    2.75% 2.20% 1.65% 1.10% 0.55% 0.01% -0.54% -1.09% -1.64%

    0.32% 0.62% 0.92% 1.22% 1.52% 1.83% 2.13% 2.43% 2.73%

    1.45% 1.38% 1.31% 1.24% 1.18% 1.11% 1.04% 0.97% 0.90%

    1.97% 2.04% 2.10% 2.17% 2.24% 2.31% 2.38% 2.45% 2.52%1.90% 2.05% 2.21% 2.36% 2.51% 2.67% 2.82% 2.97% 3.13%

    2.87% 2.42% 1.98% 1.54% 1.09% 0.65% 0.20% -0.24% -0.69%

    7.48% 7.36% 7.24% 7.11% 6.99% 6.86% 6.74% 6.62% 6.49%

    1.17% 1.24% 1.31% 1.37% 1.44% 1.51% 1.58% 1.64% 1.71%

    -1.24% -1.14% -1.05% -0.96% -0.86% -0.77% -0.68% -0.58% -0.49%

    -4.10% -4.37% -4.64% -4.91% -5.18% -5.46% -5.73% -6.00% -6.27%

    -7.12% -7.34% -7.56% -7.78% -7.99% -8.21% -8.43% -8.65% -8.87%

    6.26% 6.36% 6.47% 6.58% 6.69% 6.80% 6.91% 7.02% 7.13%

    12.03% 12.71% 13.39% 14.07% 14.74% 15.42% 16.10% 16.78% 17.45%

    -10.97% -10.96% -10.96% -10.95% -10.94% -10.94% -10.93% -10.92% -10.92%0.95% 1.04% 1.13% 1.22% 1.31% 1.40% 1.50% 1.59% 1.68%

    -9.00% -9.22% -9.44% -9.66% -9.88% -10.10% -10.32% -10.54% -10.76%

    -3.57% -2.84% -2.10% -1.37% -0.63% 0.10% 0.84% 1.57% 2.31%

    -1.32% -1.41% -1.49% -1.57% -1.65% -1.74% -1.82% -1.90% -1.99%

    -7.95% -8.31% -8.67% -9.04% -9.40% -9.76% -10.12% -10.48% -10.84%

    3.60% 3.59% 3.57% 3.56% 3.54% 3.53% 3.51% 3.50% 3.48%

    -3.66% -3.98% -4.30% -4.61% -4.93% -5.25% -5.56% -5.88% -6.20%

    -2.13% -2.25% -2.36% -2.48% -2.59% -2.71% -2.82% -2.94% -3.05%

    1.37% 1.49% 1.61% 1.73% 1.85% 1.97% 2.10% 2.22% 2.34%

    8.25% 8.39% 8.54% 8.69% 8.83% 8.98% 9.12% 9.27% 9.42%4.77% 5.36% 5.95% 6.54% 7.13% 7.73% 8.32% 8.91% 9.50%

    -8.71% -8.82% -8.93% -9.03% -9.14% -9.25% -9.36% -9.47% -9.57%

    -8.26% -8.63% -9.00% -9.36% -9.73% -10.10% -10.47% -10.84% -11.21%

    -3.14% -3.55% -3.96% -4.37% -4.79% -5.20% -5.61% -6.02% -6.43%

    75% 70% 65% 60% 55% 50% 45% 40% 35%

    25% 30% 35% 40% 45% 50% 55% 60% 65%

    0.157% 0.156% 0.154% 0.152% 0.151% 0.149% 0.148% 0.146% 0.145%

    0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06

    0.157% 0.156% 0.154% 0.152% 0.151% 0.149% 0.148% 0.146% 0.145%

    2.972% 2.840% 2.802% 2.862% 3.012% 3.242% 3.534% 3.876% 4.255%

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    0%

    0%

    0%

    0%

    0%

    0%

    0%

    Return over standard deviation

  • 8/6/2019 Tamara David Gordan Final Project

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    15 16 17 18 19 20 21

    30% 25% 20% 15% 10% 5% 0%

    70% 75% 80% 85% 90% 95% 100%

    -2.31% -2.31% -2.31% -2.31% -2.32% -2.32% -2.32%

    -2.42% -2.49% -2.57% -2.65% -2.72% -2.80% -2.87%2.33% 2.29% 2.25% 2.21% 2.18% 2.14% 2.10%

    -3.19% -3.41% -3.63% -3.85% -4.07% -4.29% -4.51%

    -1.55% -1.88% -2.22% -2.56% -2.90% -3.24% -3.58%

    0.22% 0.08% -0.07% -0.22% -0.36% -0.51% -0.65%

    9.31% 9.51% 9.71% 9.91% 10.10% 10.30% 10.50%

    -3.36% -3.58% -3.80% -4.03% -4.25% -4.47% -4.70%

    7.34% 7.60% 7.86% 8.12% 8.38% 8.64% 8.90%

    5.66% 5.44% 5.22% 5.00% 4.78% 4.56% 4.34%

    -7.42% -7.61% -7.81% -8.00% -8.19% -8.38% -8.57%

    10.57% 10.83% 11.10% 11.36% 11.62% 11.89% 12.15%

    -9.18% -9.45% -9.72% -9.99% -10.26% -10.53% -10.80%

    -13.07% -13.42% -13.76% -14.11% -14.46% -14.81% -15.16%

    3.44% 3.58% 3.72% 3.86% 4.00% 4.14% 4.29%

    3.27% 3.08% 2.90% 2.71% 2.53% 2.34% 2.15%

    2.42% 2.39% 2.36% 2.33% 2.30% 2.27% 2.24%

    -6.40% -6.60% -6.79% -6.98% -7.18% -7.37% -7.56%

    3.09% 3.19% 3.28% 3.37% 3.47% 3.56% 3.66%

    6.28% 6.32% 6.36% 6.40% 6.44% 6.48% 6.51%

    4.89% 5.38% 5.87% 6.36% 6.85% 7.34% 7.83%

    4.11% 4.15% 4.19% 4.22% 4.26% 4.30% 4.34%

    4.77% 4.87% 4.97% 5.07% 5.17% 5.27% 5.37%1.49% 1.06% 0.64% 0.22% -0.21% -0.63% -1.05%

    9.66% 10.35% 11.04% 11.73% 12.42% 13.10% 13.79%

    4.24% 4.17% 4.09% 4.01% 3.94% 3.86% 3.79%

    10.03% 10.07% 10.12% 10.16% 10.21% 10.25% 10.30%

    12.17% 12.43% 12.69% 12.95% 13.21% 13.47% 13.73%

    -6.76% -6.46% -6.16% -5.85% -5.55% -5.25% -4.95%

    -10.99% -11.16% -11.33% -11.51% -11.68% -11.85% -12.02%

    -2.44% -2.67% -2.90% -3.13% -3.36% -3.59% -3.82%

    -8.45% -8.52% -8.59% -8.66% -8.73% -8.80% -8.87%

    -16.51% -16.48% -16.45% -16.41% -16.38% -16.35% -16.32%-4.25% -3.91% -3.56% -3.22% -2.88% -2.53% -2.19%

    4.94% 5.20% 5.47% 5.73% 6.00% 6.26% 6.53%

    -4.87% -5.14% -5.42% -5.70% -5.98% -6.25% -6.53%

    -4.59% -4.30% -4.01% -3.73% -3.44% -3.16% -2.87%

    0.08% 0.01% -0.06% -0.13% -0.20% -0.27% -0.34%

    1.80% 1.59% 1.37% 1.16% 0.95% 0.74% 0.53%

    2.83% 3.08% 3.32% 3.57% 3.81% 4.06% 4.30%

    -12.40% -13.04% -13.68% -14.31% -14.95% -15.59% -16.23%

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    -7.72% -7.84% -7.95% -8.07% -8.18% -8.30% -8.41%

    3.89% 4.23% 4.57% 4.91% 5.25% 5.59% 5.93%

    -7.20% -7.40% -7.60% -7.80% -8.00% -8.20% -8.40%

    17.91% 19.09% 20.26% 21.43% 22.61% 23.78% 24.95%

    2.84% 2.79% 2.73% 2.68% 2.63% 2.57% 2.52%

    -0.01% -0.10% -0.19% -0.28% -0.38% -0.47% -0.56%

    -2.09% -2.01% -1.94% -1.86% -1.78% -1.70% -1.62%

    -3.31% -3.41% -3.52% -3.63% -3.74% -3.85% -3.96%2.96% 2.94% 2.92% 2.90% 2.88% 2.86% 2.84%

    6.49% 6.65% 6.80% 6.96% 7.11% 7.26% 7.42%

    -0.46% -0.56% -0.67% -0.77% -0.87% -0.98% -1.08%

    -6.53% -6.84% -7.15% -7.46% -7.77% -8.08% -8.39%

    2.78% 2.88% 2.97% 3.07% 3.17% 3.27% 3.37%

    1.55% 1.57% 1.59% 1.61% 1.63% 1.65% 1.67%

    2.34% 2.39% 2.44% 2.49% 2.53% 2.58% 2.63%

    4.42% 4.51% 4.60% 4.70% 4.79% 4.88% 4.97%

    5.24% 5.44% 5.64% 5.84% 6.04% 6.24% 6.44%

    5.66% 5.91% 6.17% 6.42% 6.67% 6.92% 7.18%2.43% 2.57% 2.71% 2.84% 2.98% 3.12% 3.26%

    2.01% 2.15% 2.29% 2.44% 2.58% 2.72% 2.86%

    -4.99% -5.13% -5.26% -5.40% -5.54% -5.67% -5.81%

    -7.53% -8.15% -8.78% -9.40% -10.03% -10.65% -11.28%

    1.22% 1.23% 1.24% 1.25% 1.26% 1.27% 1.27%

    -2.93% -3.15% -3.36% -3.57% -3.79% -4.00% -4.21%

    6.10% 6.35% 6.61% 6.86% 7.12% 7.37% 7.62%

    -3.89% -4.17% -4.44% -4.71% -4.98% -5.25% -5.52%

    6.68% 6.91% 7.14% 7.36% 7.59% 7.82% 8.04%

    -0.62% -0.54% -0.46% -0.38% -0.29% -0.21% -0.13%-4.00% -4.33% -4.67% -5.00% -5.34% -5.67% -6.01%

    4.72% 5.14% 5.55% 5.97% 6.39% 6.81% 7.22%

    3.25% 3.22% 3.20% 3.17% 3.15% 3.12% 3.10%

    -2.60% -2.79% -2.97% -3.16% -3.34% -3.53% -3.71%

    2.51% 2.47% 2.44% 2.40% 2.37% 2.33% 2.30%

    2.67% 3.00% 3.34% 3.67% 4.00% 4.34% 4.67%

    -3.34% -3.44% -3.55% -3.65% -3.75% -3.85% -3.95%

    -2.21% -2.50% -2.80% -3.09% -3.38% -3.67% -3.97%

    -1.90% -1.86% -1.82% -1.77% -1.73% -1.68% -1.64%

    0.74% 0.56% 0.38% 0.20% 0.02% -0.16% -0.33%

    5.94% 6.09% 6.24% 6.39% 6.54% 6.69% 6.84%

    1.24% 1.23% 1.22% 1.21% 1.20% 1.19% 1.18%

    1.18% 1.20% 1.21% 1.23% 1.25% 1.26% 1.28%

    -2.67% -2.88% -3.09% -3.29% -3.50% -3.71% -3.92%

    -1.21% -1.05% -0.90% -0.74% -0.58% -0.42% -0.26%

    6.76% 7.11% 7.47% 7.82% 8.18% 8.53% 8.89%

    0.63% 0.59% 0.55% 0.51% 0.47% 0.42% 0.38%

    2.87% 3.20% 3.53% 3.85% 4.18% 4.50% 4.83%

    -4.72% -4.94% -5.16% -5.38% -5.61% -5.83% -6.05%

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    VARIANCE, CORRELATION, BETA OF MSDate MS retur SP500 return Covariance SP500& 0.00223891

    6/1/2011 -2.32% -2.28% Variance MS: 0.01

    5/2/2011 -2.87% -1.35% Variance SP500: 0

    4/1/2011 2.10% 2.85% Correlation: 0.67

    3/1/2011 -4.51% -0.10% Beta MS : 1.08

    2/1/2011 -3.58% 3.20%1/3/2011 -0.65% 2.26% SUMMARY OUTPUT FOR REGRE

    12/1/2010 10.50% 6.53% Y variable SP500 - independent

    11/1/2010 -4.70% -0.23% Regression Statistics

    10/1/2010 8.90% 3.69% Multiple R 0.67

    9/1/2010 4.34% 8.76% R Square 0.44

    8/2/2010 -8.57% -4.74% Adjusted R Square 0.44

    7/1/2010 12.15% 6.88% Standard Error 0.06

    6/1/2010 -10.80% -5.39% Observations 120

    5/3/2010 -15.16% -8.20%

    4/1/2010 4.29% 1.48% ANOVA

    3/1/2010 2.15% 5.88% df

    2/1/2010 2.24% 2.85% Regression 1

    1/4/2010 -7.56% -3.70% Residual 118

    12/1/2009 3.66% 1.78% Total 119

    11/2/2009 6.51% 5.74%

    10/1/2009 7.83% -1.98% Coefficients

    9/1/2009 4.34% 3.57% Intercept 0

    8/3/2009 5.37% 3.36% X Variable 1 1.08

    7/1/2009 -1.05% 7.41%

    6/1/2009 13.79% 0.02%

    5/1/2009 3.79% 5.31%

    4/1/2009 10.30% 9.39%

    3/2/2009 13.73% 8.54%

    2/2/2009 -4.95% -10.99%

    1/2/2009 -12.02% -8.57%

    12/1/2008 -3.82% 0.78%

    11/3/2008 -8.87% -7.48%

    10/1/2008 -16.32% -16.94%

    9/2/2008 -2.19% -9.08%

    8/1/2008 6.53% 1.22%

    7/1/2008 -6.53% -0.99%

    6/2/2008 -2.87% -8.60%

    5/1/2008 -0.34% 1.07%

    4/1/2008 0.53% 4.75%

    3/3/2008 4.30% -0.60%

    2/1/2008 -16.23% -3.48%

    1/2/2008 -8.41% -6.12%

    12/3/2007 5.93% -0.86%

    11/1/2007 -8.40% -4.40%

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    10/1/2007 24.95% 1.48%

    9/4/2007 2.52% 3.58%

    8/1/2007 -0.56% 1.29%

    7/2/2007 -1.62% -3.20%

    6/1/2007 -3.96% -1.78%

    5/1/2007 2.84% 3.25%

    4/2/2007 7.42% 4.33%

    3/1/2007 -1.08% 1.00%2/1/2007 -8.39% -2.18%

    1/3/2007 3.37% 1.41%

    12/1/2006 1.67% 1.26%

    11/1/2006 2.63% 1.65%

    10/2/2006 4.97% 3.15%

    9/1/2006 6.44% 2.46%

    8/1/2006 7.18% 2.13%

    7/3/2006 3.26% 0.51%

    6/1/2006 2.86% 0.01%

    5/1/2006 -5.81% -3.09%4/3/2006 -11.28% 1.22%

    3/1/2006 1.27% 1.11%

    2/1/2006 -4.21% 0.05%

    1/3/2006 7.62% 2.55%

    12/1/2005 -5.52% -0.10%

    11/1/2005 8.04% 3.52%

    10/3/2005 -0.13% -1.77%

    9/1/2005 -6.01% 0.69%

    8/1/2005 7.22% -1.12%

    7/1/2005 3.10% 3.60%6/1/2005 -3.71% -0.01%

    5/2/2005 2.30% 3.00%

    4/1/2005 4.67% -2.01%

    3/1/2005 -3.95% -1.91%

    2/1/2005 -3.97% 1.89%

    1/3/2005 -1.64% -2.53%

    12/1/2004 -0.33% 3.25%

    11/1/2004 6.84% 3.86%

    10/1/2004 1.18% 1.40%

    9/1/2004 1.28% 0.94%

    8/2/2004 -3.92% 0.23%

    7/1/2004 -0.26% -3.43%

    6/1/2004 8.89% 1.80%

    5/3/2004 0.38% 1.21%

    4/1/2004 4.83% -1.68%

    3/1/2004 -6.05% -1.64%

    2/2/2004 -4.03% 1.22%

    1/2/2004 1.01% 1.73%

    12/1/2003 6.48% 5.08%

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    11/3/2003 -1.63% 0.71%

    10/1/2003 -5.49% 5.50%

    9/2/2003 4.85% -1.19%

    8/1/2003 0.43% 1.79%

    7/1/2003 3.00% 1.62%

    6/2/2003 4.20% 1.13%

    5/1/2003 -3.79% 5.09%

    4/1/2003 5.62% 8.10%3/3/2003 2.18% 0.84%

    2/3/2003 0.16% -1.70%

    1/2/2003 -8.17% -2.74%

    12/2/2002 -10.39% -6.03%

    11/1/2002 7.90% 5.71%

    10/1/2002 22.20% 8.64%

    9/3/2002 -10.87% -11.00%

    8/1/2002 2.32% 0.49%

    7/1/2002 -12.30% -7.90%

    6/3/2002 7.45% -7.25%5/1/2002 -2.57% -0.91%

    4/1/2002 -13.38% -6.14%

    3/1/2002 3.38% 3.67%

    2/1/2002 -8.42% -2.08%

    1/2/2002 -3.85% -1.56%

    12/3/2001 3.19% 0.76%

    11/1/2001 10.44% 7.52%

    10/1/2001 13.64% 1.81%

    9/4/2001 -10.33% -8.17%

    8/1/2001 -13.79% -6.41%7/2/2001 -9.32% -1.07%

    6/1/2001 n/a not available

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    regression coefficient

    SION

    SS MS F gnificance F

    0.29 0.29 94.03 0

    0.37 0

    0.66

    tandard Erro t Stat P-value ower 95% pper 95% wer 95.0 per 95.0%

    0.01 -0.09 0.93 -0.01 0.01 -0.01 0.01

    0.11 9.7 0 0.86 1.3 0.86 1.3

    According to Yahoo, beta of Miscrosoft is 0.97,little less risky than the market. However, beta wegot using regression is 1.08, slightly above. Thefact that we used only 10 years of data could beone of the reasons for dicrepency. Also, beta isusually calculated using WEEKLY data, not monthlydata, perhaps that was additional discrepencyreason as well.

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    CAPM CALCULATIONCAPM DATA

    1.08

    rM 0.02(annulized 0.0017x12 avg monthly return = 2.04% close to year to da

    rRF 0.03(0.0294 according to: http://www.bloomberg.com/markets/rates-bond

    ri= 0.0294 + 1.08 (0.0204-0.0294)

    ri = 0.0294 + 1.08 (-0.009)

    ri = 0.0294 + (-0.009720)

    ri = 0.019680

    ri = 1.968%

    ri = rRF + (rM-rRF)

    MS stock is slightly more risky than the market.beta, MS is about 8% riskier comparing to the Sindex. Based on that risk, investor demand 1.9MS stock should generally follow the return of t

    less than 10% risky. However, a more detailedprovide us with the information that MS is slighcomparing to the market, however within the aCorrelation between MS and SP500 also indicatgenerally corelates with SP. Historical graph btrend that MS is generally foloowing the SP, buvolitile, and thus more risky.

    123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172

    -20.00%

    -15.00%

    -10.00%

    -5.00%

    0.00%

    5.00%

    10.00%

    15.00%

    20.00%

    25.00%30.00%

    MS return SP500 return

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    returns:http://www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500-usd

    /government-bonds/us/)

    Based on theP500 market68% return. Thehe market as its

    analysis willly more volitile

    cceptable range.es that MS willlow shows thet it is a bit more

    37475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120

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    uf--p-us-l--)


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