A B C D E F

PRICE AND RETURN DATA FOR WALMART (WMT)

1 AND TARGET (TGT)
Yahoo's closing price adjusts for dividends
2 Prices Returns
3 Date WMT TGT WMT TGT
4 5-Jul-01 26.07 37.40
5 1-Aug-01 22.00 33.53 -16.97% -10.92%
6 4-Sep-01 20.07 30.73 -9.18% -8.72%
7 1-Oct-01 20.02 30.15 -0.25% -1.91%
8 1-Nov-01 23.35 36.38 15.39% 18.78%
9 3-Dec-01 24.79 39.79 5.98% 8.96%
10 2-Jan-02 23.03 43.04 -7.36% 7.85%
11 4-Feb-02 18.09 40.66 -24.14% -5.69%
12 1-Mar-02 19.17 41.85 5.80% 2.88%
13 1-Apr-02 20.25 42.36 5.48% 1.21%
14 1-May-02 22.79 40.29 11.82% -5.01%
15 3-Jun-02 20.52 37.03 -10.49% -8.44%
16 1-Jul-02 16.50 32.41 -21.80% -13.33%
17 1-Aug-02 16.27 33.30 -1.40% 2.71%
18 3-Sep-02 14.92 28.74 -8.66% -14.73%
19 1-Oct-02 18.01 29.32 18.82% 2.00%
20 1-Nov-02 22.43 33.92 21.95% 14.57%
21 2-Dec-02 21.75 29.26 -3.08% -14.78%
22 2-Jan-03 18.43 27.51 -16.56% -6.17%
23 3-Feb-03 18.87 28.00 2.36% 1.77%
24 3-Mar-03 18.67 28.60 -1.07% 2.12%
25 1-Apr-03 16.32 32.69 -13.45% 13.37%
26 1-May-03 16.57 35.87 1.52% 9.28%
27 2-Jun-03 16.12 37.05 -2.75% 3.24%
28 1-Jul-03 17.91 37.52 10.53% 1.26%
29 1-Aug-03 20.45 39.83 13.26% 5.97%
30 2-Sep-03 20.60 36.91 0.73% -7.61%
31 1-Oct-03 22.92 38.98 10.67% 5.46%
32 3-Nov-03 24.12 38.05 5.10% -2.41%
33 1-Dec-03 25.47 37.74 5.45% -0.82%
34 2-Jan-04 25.50 37.31 0.12% -1.15%
35 2-Feb-04 30.06 43.27 16.45% 14.82%
36 1-Mar-04 33.87 44.34 11.93% 2.44%
37 1-Apr-04 33.10 42.69 -2.30% -3.79%
38 3-May-04 34.97 44.08 5.50% 3.20%
39 1-Jun-04 36.91 41.88 5.40% -5.12%
40 1-Jul-04 39.23 42.99 6.10% 2.62%
41 2-Aug-04 37.58 44.04 -4.30% 2.41%
42 1-Sep-04 34.60 44.70 -8.26% 1.49%
43 1-Oct-04 34.04 49.41 -1.63% 10.02%
44 1-Nov-04 37.99 50.68 10.98% 2.54%
45 1-Dec-04 40.74 51.38 6.99% 1.37%
 A B C D E F
46 3-Jan-05 42.17 50.23 3.45% -2.26%
47 1-Feb-05 43.92 50.36 4.07% 0.26%
48 1-Mar-05 51.25 49.57 15.43% -1.58%
49 1-Apr-05 46.92 45.99 -8.83% -7.50%
50 2-May-05 49.25 53.30 4.85% 14.75%
51 1-Jun-05 52.04 54.00 5.51% 1.30%
52 1-Jul-05 55.69 58.31 6.78% 7.68%
53 1-Aug-05 48.24 53.45 -14.36% -8.70%
54 1-Sep-05 47.04 51.64 -2.52% -3.45%
55 3-Oct-05 50.93 55.37 7.95% 6.97%
56 1-Nov-05 52.19 53.31 2.44% -3.79%
57 1-Dec-05 55.31 54.76 5.81% 2.68%
58 3-Jan-06 55.63 54.54 0.58% -0.40%
59 1-Feb-06 58.46 54.29 4.96% -0.46%
60 1-Mar-06 60.23 51.90 2.98% -4.50%
61 3-Apr-06 65.46 52.99 8.33% 2.08%
62 1-May-06 60.84 48.92 -7.32% -7.99%
63 1-Jun-06 67.51 48.87 10.40% -0.10%
64 3-Jul-06 67.65 49.17 0.21% 0.61%
65
66 WMT TGT
67 Monthly mean 1.59% 0.46%
68 Monthly variance 0.0093 0.0052
69 Monthly standard deviation 9.63% 7.19%
70
71 Annual mean 19.07% 5.47%
72 Annual variance 0.1114 0.0620
73 Annual standard deviation 33.37% 24.90%
 G

WALMART (WMT)
GT) 1
or dividends
2
3
4
5 #VALUE!
6 #VALUE!
7 #VALUE!
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
 G
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67 #VALUE!
68 #VALUE!
69 #VALUE!
70
71 #VALUE!
72 #VALUE!
73 #VALUE!
 UN-5B

A B C D E F G H I J K
1 COMPUTING THE COVARIANCE FOR WALMART (WMT) AND TARGET (TGT)
Return Return
2 minus minus
Date WMT Return mean TGT Return mean Product
3 5-Jul-01 26.07 37.40
4 1-Aug-01 22.00 -16.97% -18.56% 33.53 -10.92% -11.38% #VALUE! 0.0211 #VALUE!
5 4-Sep-01 20.07 -9.18% -10.77% 30.73 -8.72% -9.18% 0.0099
6 1-Oct-01 20.02 -0.25% -1.84% 30.15 -1.91% -2.36% 0.0004
7 1-Nov-01 23.35 15.39% 13.80% 36.38 18.78% 18.33% 0.0253
8 3-Dec-01 24.79 5.98% 4.40% 39.79 8.96% 8.50% 0.0037
9 2-Jan-02 23.03 -7.36% -8.95% 43.04 7.85% 7.40% -0.0066
10 4-Feb-02 18.09 -24.14% -25.73% 40.66 -5.69% -6.14% 0.0158
11 1-Mar-02 19.17 5.80% 4.21% 41.85 2.88% 2.43% 0.0010
12 1-Apr-02 20.25 5.48% 3.89% 42.36 1.21% 0.76% 0.0003
55 1-Nov-05 52.19 2.44% 0.85% 53.31 -3.79% -4.25% -0.0004
56 1-Dec-05 55.31 5.81% 4.22% 54.76 2.68% 2.23% 0.0009
57 3-Jan-06 55.63 0.58% -1.01% 54.54 -0.40% -0.86% 0.0001
58 1-Feb-06 58.46 4.96% 3.37% 54.29 -0.46% -0.92% -0.0003
59 1-Mar-06 60.23 2.98% 1.39% 51.90 -4.50% -4.96% -0.0007
60 3-Apr-06 65.46 8.33% 6.74% 52.99 2.08% 1.62% 0.0011
61 1-May-06 60.84 -7.32% -8.91% 48.92 -7.99% -8.45% 0.0075
62 1-Jun-06 67.51 10.40% 8.81% 48.87 -0.10% -0.56% -0.0005
63 3-Jul-06 67.65 0.21% -1.38% 49.17 0.61% 0.16% 0.0000
64
65 Average 1.59% #VALUE! 0.46% Covariance 0.0038 #VALUE!
66 Standard deviation 9.63% #VALUE! 7.19% 0.0038 #VALUE!
67
68 Correlation 0.5484 #VALUE!
69 0.5484 #VALUE!
70 0.5484 #VALUE!
 UN-5B

A B C D E F G H I J K

1 COMPUTING THE COVARIANCE FOR WALMART (WMT) AND TARGET (TGT)

all percentages expressed as whole numbers: The Covariance grows by a factor of 10,000, but the correlation is unchanged

Return Return
2 minus minus
Date WMT Return mean TGT Return mean Product
3 5-Jul-01 26.07 37.40
4 1-Aug-01 22.00 -16.97 -18.56 33.53 -10.92 -11.38 #VALUE! 211.24 #VALUE!
5 4-Sep-01 20.07 -9.18 -10.77 30.73 -8.72 -9.18 98.84
6 1-Oct-01 20.02 -0.25 -1.84 30.15 -1.91 -2.36 4.34
7 1-Nov-01 23.35 15.39 13.80 36.38 18.78 18.33 252.87
8 3-Dec-01 24.79 5.98 4.40 39.79 8.96 8.50 37.37
9 2-Jan-02 23.03 -7.36 -8.95 43.04 7.85 7.40 -66.22
10 4-Feb-02 18.09 -24.14 -25.73 40.66 -5.69 -6.14 158.12
11 1-Mar-02 19.17 5.80 4.21 41.85 2.88 2.43 10.22
12 1-Apr-02 20.25 5.48 3.89 42.36 1.21 0.76 2.94
55 1-Nov-05 52.19 2.44 0.85 53.31 -3.79 -4.25 -3.63
56 1-Dec-05 55.31 5.81 4.22 54.76 2.68 2.23 9.39
57 3-Jan-06 55.63 0.58 -1.01 54.54 -0.40 -0.86 0.87
58 1-Feb-06 58.46 4.96 3.37 54.29 -0.46 -0.92 -3.09
59 1-Mar-06 60.23 2.98 1.39 51.90 -4.50 -4.96 -6.91
60 3-Apr-06 65.46 8.33 6.74 52.99 2.08 1.62 10.93
61 1-May-06 60.84 -7.32 -8.91 48.92 -7.99 -8.45 75.26
62 1-Jun-06 67.51 10.40 8.81 48.87 -0.10 -0.56 -4.92
63 3-Jul-06 67.65 0.21 -1.38 49.17 0.61 0.16 -0.22
64
65 Average 1.59 #VALUE! 0.46 Covariance 37.9731 #VALUE!
66 Standard deviation 9.63 #VALUE! 7.19 37.9731 #VALUE!
67
68 Correlation 0.5484 #VALUE!
69 =LN(B63/B62)*100 0.5484 #VALUE!
70 0.5484 #VALUE!
 Graphing Walmart returns (x-axis) and Target Returns (y-axis)
The R2 is the Correlation2

Target
18%

13%

8%

f(x) = 0.409108114717745 x − 0.00194161711509

R² = 0.300750915841944
3%
Walmart

-25% -20% -15% -10% -5% 0% 5% 10% 15%

-2%

-7%

-12%
 A B C D E F
1 CALCULATING THE MEAN AND STANDARD DEVIATION
2 Proportion of WMT 0.5
3 Proportion of TGT 0.5 #VALUE!
4
WMT TGT Portfolio
5
return return return
6 1-Aug-01 -16.97% -10.92% -13.95% #VALUE!
7 4-Sep-01 -9.18% -8.72% -8.95% #VALUE!
8 1-Oct-01 -0.25% -1.91% -1.08%
9 1-Nov-01 15.39% 18.78% 17.08%
10 3-Dec-01 5.98% 8.96% 7.47%
11 2-Jan-02 -7.36% 7.85% 0.24%
12 4-Feb-02 -24.14% -5.69% -14.92%
13 1-Mar-02 5.80% 2.88% 4.34%
14 1-Apr-02 5.48% 1.21% 3.35%
15 1-May-02 11.82% -5.01% 3.40%
16 3-Jun-02 -10.49% -8.44% -9.46%
17 1-Jul-02 -21.80% -13.33% -17.57%
18 1-Aug-02 -1.40% 2.71% 0.65%
19 3-Sep-02 -8.66% -14.73% -11.69%
20 1-Oct-02 18.82% 2.00% 10.41%
21 1-Nov-02 21.95% 14.57% 18.26%
22 2-Dec-02 -3.08% -14.78% -8.93%
23 2-Jan-03 -16.56% -6.17% -11.37%
24 3-Feb-03 2.36% 1.77% 2.06%
25 3-Mar-03 -1.07% 2.12% 0.53%
26 1-Apr-03 -13.45% 13.37% -0.04%
27 1-May-03 1.52% 9.28% 5.40%
28 2-Jun-03 -2.75% 3.24% 0.24%
29 1-Jul-03 10.53% 1.26% 5.90%
30 1-Aug-03 13.26% 5.97% 9.62%
31 2-Sep-03 0.73% -7.61% -3.44%
32 1-Oct-03 10.67% 5.46% 8.06%
33 3-Nov-03 5.10% -2.41% 1.34%
34 1-Dec-03 5.45% -0.82% 2.31%
35 2-Jan-04 0.12% -1.15% -0.51%
36 2-Feb-04 16.45% 14.82% 15.64%
37 1-Mar-04 11.93% 2.44% 7.19%
38 1-Apr-04 -2.30% -3.79% -3.05%
39 3-May-04 5.50% 3.20% 4.35%
40 1-Jun-04 5.40% -5.12% 0.14%
41 1-Jul-04 6.10% 2.62% 4.36%
42 2-Aug-04 -4.30% 2.41% -0.94%
43 1-Sep-04 -8.26% 1.49% -3.39%
44 1-Oct-04 -1.63% 10.02% 4.19%
45 1-Nov-04 10.98% 2.54% 6.76%
46 1-Dec-04 6.99% 1.37% 4.18%
47 3-Jan-05 3.45% -2.26% 0.59%
48 1-Feb-05 4.07% 0.26% 2.16%
 A B C D E F
49 1-Mar-05 15.43% -1.58% 6.93%
50 1-Apr-05 -8.83% -7.50% -8.16%
51 2-May-05 4.85% 14.75% 9.80%
52 1-Jun-05 5.51% 1.30% 3.41%
53 1-Jul-05 6.78% 7.68% 7.23%
54 1-Aug-05 -14.36% -8.70% -11.53%
55 1-Sep-05 -2.52% -3.45% -2.98%
56 3-Oct-05 7.95% 6.97% 7.46%
57 1-Nov-05 2.44% -3.79% -0.67%
58 1-Dec-05 5.81% 2.68% 4.24%
59 3-Jan-06 0.58% -0.40% 0.09%
60 1-Feb-06 4.96% -0.46% 2.25%
61 1-Mar-06 2.98% -4.50% -0.76%
62 3-Apr-06 8.33% 2.08% 5.20%
63 1-May-06 -7.32% -7.99% -7.66%
64 1-Jun-06 10.40% -0.10% 5.15%
65 3-Jul-06 0.21% 0.61% 0.41%
 G H I J
AN AND STANDARD
1 DEVIATION OF A PORTFOLIO
2
3
4
5
6 Asset returns WMT TGT
7 Mean return 1.59% 0.46% #VALUE!
8 Variance 0.0093 0.0052 #VALUE!
9 Standard deviation 9.63% 7.19% #VALUE!
10 Covariance 0.0038 #VALUE!
11
12 Portfolio mean return
13 1.02% #VALUE!
14 1.02% #VALUE!
15 Portfolio return variance
16 0.0055 #VALUE!
17 0.0055 #VALUE!
18
19 Portfolio return standard deviation 7.42% #VALUE!
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
 A B C D E F
1 CALCULATING THE MEAN AND STANDARD DEVIATION OF
2 Asset returns WMT TGT
3 Mean return 1.59% 0.46%
4 Variance 0.93% 0.52%
5 Standard deviation 9.63% 7.19%
6 Covariance 0.0038
7
8 Proportion of WMT 0.5 <-- In the data table below this is varied from -0.5 to 1.5
9
10 Portfolio mean return 1.02% #VALUE!
11 Portfolio return variance 0.0036 #VALUE!
12 Portfolio return standard deviation 6.01% #VALUE!
13
14 Data table: Varying the proportion of WMT
Portfolio Porfolio
15 standard mean
deviation return
16 Proportion of WMT 6.01% 1.02% #VALUE!
17 -0.5 11.81% -0.11%
18 -0.4 10.77% 0.00%
2.5% Portfolio Mean and Standar
19 -0.3 9.78% 0.12%
Varying the Proportions of
20 -0.2 8.84% 0.23%
21 -0.1 7.96% 0.34%
22 0 7.19% 0.46% 2.0%
23 0.1 6.54% 0.57%
24 0.2 6.06% 0.68%
25 0.3 5.80% 0.80% 1.5%
26 0.4 5.78% 0.91%
Mean return

27 0.5 6.01% 1.02%

28 0.6 6.46% 1.14% 1.0%
29 0.7 7.08% 1.25%
30 0.8 7.84% 1.36%
31 0.9 8.70% 1.48% 0.5%
32 1 9.63% 1.59%
33 1.1 10.62% 1.70%
34 1.2 11.65% 1.82%
0.0%
35 1.3 12.71% 1.93%
4% 6% 8% 10%
36 1.4 13.79% 2.04%
37 1.5 14.89% 2.16%
-0.5%
38
39 Standard devia
40
 G H
DARD DEVIATION
1 OF A PORTFOLIO
2
3
4
5
6
7
8
9
10
11
12
13
14

15

16
17
18
Portfolio Mean and Standard Deviation
Varying the19
Proportions of WMT and TGT
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
6% 35
8% 10% 12% 14% 16%
36
37
38
39 Standard deviation
40
 UN-5G

A B C D E F G
1 A FOUR-ASSET PORTFOLIO PROBLEM
Mean
2 Variance-covariance, S returns
E(r)
3 0.10 0.01 0.03 0.05 6%
4 0.01 0.30 0.06 -0.04 8%
5 0.03 0.06 0.40 0.02 10%
6 0.05 -0.04 0.02 0.50 15%
7
8 Portfolio x 0.2 0.3 0.4 0.1
9 Portfolio y 0.2 0.1 0.1 0.6
10
11 Portfolio x and y statistics: Mean, variance, covariance, correlation
12 Mean, E(rx) 9.10% Mean, E(ry) 12.00% #VALUE!
13 Variance, sx2 0.1216 Variance, sy2 0.2034 #VALUE!
14 Covariance(x,y) 0.0714 #VALUE!
15 Correlation, rxy 0.4540 #VALUE!
16
17 Calculating returns of combinations of Portfolio x and Portfolio y
18 Proportion of Portfolio x 0.3
19 Mean return, E(rp) 11.13% #VALUE!
20 Variance of return, sp2 14.06% #VALUE!
21 Stand. dev. of return, sp 37.50% #VALUE!
22
23 Table of returns (uses this example and Data|Table)
Proportion Standard
24 Mean
of x deviation
25 37.50% 11.13% #VALUE!
26 0.0 45.10% 12.00%
27 0.1 42.29% 11.71%
28 0.2 39.74% 11.42%
29 0.3 37.50% 11.13% Returns of Combinations of
30 0.4 35.63% 10.84% Portfolios x and y
31 0.5 34.20% 10.55% 13%
32 0.6 33.26% 10.26% 12%
33 0.7 32.84% 9.97% 12%
34 0.8 32.99% 9.68% 11%
Mean return

35 0.9 33.67% 9.39% 11%

36 1.0 34.87% 9.10% 10%
37 1.1 36.53% 8.81% 10%
38 1.2 38.60% 8.52%
9%
39
9%
40
8%
41
30% 32% 34% 36% 38% 40% 42% 44% 46%
42 Standard deviation
43
 UN-5G

A B C D E F G H I J
1 A FOUR-ASSET PORTFOLIO PROBLEM
Mean
2 returns
Variance-covariance, S E(r)
3 0.10 0.01 0.03 0.05 6%
4 0.01 0.30 0.06 -0.04 8%
5 0.03 0.06 0.40 0.02 10%
6 0.05 -0.04 0.02 0.50 15%
7
8 Portfolio X 0.2 0.3 0.4 0.1
9 Portfolio Y 0.2 0.1 0.1 0.6
10
11 Portfolio X and Y statistics: Mean, variance, covariance, correlation
12 Mean, E(rX) 9.10% Mean, E(rY) 12.00% #VALUE!
13 Variance, s X2 0.1216 Variance, sY2 0.2034 #VALUE!
14 Covariance(X,Y) 0.0714 #VALUE!
15 Correlation, r XY 0.4540 #VALUE!
16
17 Calculating returns of combinations of Portfolio x and Portfolio y
18 Proportion of Portfolio x 0.3
19 Mean return, E(rp) 11.13% #VALUE!
20 Variance of return, sp2 14.06% #VALUE!
21 Stand. dev. of return, sp 37.50% #VALUE!
22
23 Table of returns (uses this example and Data|Table)
Proportion Standard
24 Mean
of X deviation
25 37.50% 11.13% #VALUE!
26 -0.80 72.88% 14.32%
27 -0.65 67.23% 13.89%
28 -0.50 61.72% 13.45%
29 -0.35 56.40% 13.02%
30 -0.20 51.33% 12.58%
Portfolios x, y and the Four Stocks
31 -0.05 46.59% 12.15% 15%
Stock D
32 0.10 42.29% 11.71%
33 0.25 38.57% 11.28%
34 0.40 35.63% 10.84%
35 0.55 33.66% 10.41% 13%
36 0.70 32.84% 9.97%
37 0.85 33.26% 9.54%
38 1.00 34.87% 9.10%
39 1.15 37.52% 8.67% 11%
Mean return

40 1.30 41.00% 8.23%

41 1.45 45.13% 7.80% Stock C
42 1.60 49.74% 7.36%
43 1.75 54.72% 6.93% 9%
44 1.90 59.96% 6.49%
45 Stock A 31.62% 6.00% Stock B
46 Stock B 54.77% 8.00%
47 Stock C 63.25% 10.00% 7%
48 Stock D 70.71% 15.00%
49 Stock A
50
51 5%
52 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%
53
54 Standard deviation
 A B C D E F

1
GENERAL MOTORS (GM) STOCK
ADJUSTING FOR DIVIDENDS
Share Discretely Continuously
Dividend
2 Year price at compounded compounded
per share
end year return return
3 1986 33.00 #VALUE!
4 1987 30.69 2.50 0.57% 0.57%
5 1988 41.75 2.50 44.20% 36.60%
6 1989 42.25 3.00 8.38% 8.05% #VALUE!
7 1990 34.38 3.00 -11.54% -12.26%
8 1991 28.88 1.60 -11.35% -12.04%
9 1992 32.25 1.40 16.54% 15.30%
10 1993 54.88 0.80 72.64% 54.60%
11 1994 42.13 0.80 -21.78% -24.56%
12 1995 52.88 1.10 28.13% 24.79%
13 1996 55.75 1.60 8.46% 8.12%
14
15 Arithmetic annual return 13.43% 9.92% #VALUE!
16 Standard deviation of returns 27.15% 22.84% #VALUE!
 A B C D E F G
1 GENERAL MOTORS STOCK (GM) G

2 Year-end Discretely- Continuously- Year

stock Dividend compounded compounded
Year price per share return return
3 1986 33.00 1986
4 1987 30.69 2.50 0.568% 0.567% #VALUE! 1987
5 1988 41.75 2.50 44.196% 36.600% 1988
6 1989 42.25 3.00 8.383% 8.050% 1989
7 1990 34.38 3.00 -11.538% -12.260% 1990
8 1991 28.88 1.60 -11.345% -12.042% 1991
9 1992 32.25 1.40 16.537% 15.304% 1992
10 1993 54.88 0.80 72.636% 54.601% 1993
11 1994 42.13 0.80 -21.777% -24.560% 1994
12 1995 52.88 1.10 28.131% 24.788% 1995
13 1996 55.75 1.60 8.463% 8.124% 1996
14
15 Arithmetic annual return 13.425% 9.92% #VALUE!
16 Standard deviation of returns 27.148% 22.838% #VALUE!
17
18 =(B13+C13)/B12-1
19
20
21
22
23 The column "effective shares held" assumes that dividends are reinvested
24 in shares at the end of year price. Thus, in 1987, the dividend of $2.50
25 is invested in shares costing 30.69, so that the holder of 1 share at the
26 end of 1986 could buy another 2.50/30.69 = 0.081
27 shares. At the end of 1987, the owner of 1.08 shares at the end
28 of 1986 would have received a dividend of 1.08*2.50 = 2.70
29 This dividend would be reinvested in shares, 2.7/41.75 = 0.06467
30 so that the owner of 1.08 shares at the end of 1986 would now own
31 #VALUE! shares.
32
33 The "compound geometric return" is defined as:
34 [Value of ending investment/Value of beginning investment]^(1/#years) -1
 H I J K L M N
1 GM: REINVESTING THE DIVIDENDS IN SHARES
Effective
Share Total Number Value of
shares held at Dividend
2 price at dividends of shares at shares at
beginning of per share
end year received end of year end of year
year
3 33.00 33.000 #VALUE!
4 1.00 30.69 2.500 2.500 1.081 33.188
5 1.08 41.75 2.500 2.704 1.146 47.855 #VALUE!
6 1.15 42.25 3.000 3.439 1.228 51.867
7 1.23 34.38 3.000 3.683 1.335 45.882
8 1.33 28.88 1.600 2.136 1.409 40.677
9 1.41 32.25 1.400 1.972 1.470 47.403
10 1.47 54.88 0.800 1.176 1.491 81.835
11 1.49 42.13 0.800 1.193 1.520 64.014
12 1.52 52.88 1.100 1.672 1.551 82.021
13 1.55 55.75 1.600 2.482 1.596 88.963
14
15 Annualized continous return 9.92% #VALUE!
16 Compound geometric return 10.43% #VALUE!
17
18 #VALUE!
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
 UN-5B

A B C D E F G H I
1 COMPARING CONTINUOUS RETURNS TO DISCRETE RETURNS
WMT Continuous Discrete TGT Continuous Discrete
2 Date
price return return price return return
3 5-Jul-01 26.07 37.40
4 1-Aug-01 22.00 -16.97% -15.61% 33.53 -10.92% -10.35% #VALUE!
5 4-Sep-01 20.07 -9.18% -8.77% 30.73 -8.72% -8.35%
6 1-Oct-01 20.02 -0.25% -0.25% 30.15 -1.91% -1.89%
#VALUE!
7 1-Nov-01 23.35 15.39% 16.63% 36.38 18.78% 20.66%
8 3-Dec-01 24.79 5.98% 6.17% 39.79 8.96% 9.37%
9 2-Jan-02 23.03 -7.36% -7.10% 43.04 7.85% 8.17%
10 4-Feb-02 18.09 -24.14% -21.45% 40.66 -5.69% -5.53%
11 1-Mar-02 19.17 5.80% 5.97% 41.85 2.88% 2.93%
12 1-Apr-02 20.25 5.48% 5.63% 42.36 1.21% 1.22%
55 1-Nov-05 52.19 2.44% 2.47% 53.31 -3.79% -3.72%
56 1-Dec-05 55.31 5.81% 5.98% 54.76 2.68% 2.72%
57 3-Jan-06 55.63 0.58% 0.58% 54.54 -0.40% -0.40%
58 1-Feb-06 58.46 4.96% 5.09% 54.29 -0.46% -0.46%
59 1-Mar-06 60.23 2.98% 3.03% 51.90 -4.50% -4.40%
60 3-Apr-06 65.46 8.33% 8.68% 52.99 2.08% 2.10%
61 1-May-06 60.84 -7.32% -7.06% 48.92 -7.99% -7.68%
62 1-Jun-06 67.51 10.40% 10.96% 48.87 -0.10% -0.10%
63 3-Jul-06 67.65 0.21% 0.21% 49.17 0.61% 0.61%
64
65 Monthly average 1.59% 2.07% 0.46% 0.72% #VALUE!
Monthly standard
66
deviation 9.61% 9.61% 7.30% 7.30% #VALUE!
 UN-5B

A B C D E F G
1 MONTHLY AND ANNUAL MEANS AND VARIANCES
WMT Continuous TGT Continuous
2 Date
price return price return
3 5-Jul-01 26.07 37.40
4 1-Aug-01 22.00 -16.97% 33.53 -10.92% #VALUE!
5 4-Sep-01 20.07 -9.18% 30.73 -8.72%
6 1-Oct-01 20.02 -0.25% 30.15 -1.91%
7 1-Nov-01 23.35 15.39% 36.38 18.78%
8 3-Dec-01 24.79 5.98% 39.79 8.96%
9 2-Jan-02 23.03 -7.36% 43.04 7.85%
10 4-Feb-02 18.09 -24.14% 40.66 -5.69%
11 1-Mar-02 19.17 5.80% 41.85 2.88%
12 1-Apr-02 20.25 5.48% 42.36 1.21%
55 1-Nov-05 52.19 2.44% 53.31 -3.79%
56 1-Dec-05 55.31 5.81% 54.76 2.68%
57 3-Jan-06 55.63 0.58% 54.54 -0.40%
58 1-Feb-06 58.46 4.96% 54.29 -0.46%
59 1-Mar-06 60.23 2.98% 51.90 -4.50%
60 3-Apr-06 65.46 8.33% 52.99 2.08%
61 1-May-06 60.84 -7.32% 48.92 -7.99%
62 1-Jun-06 67.51 10.40% 48.87 -0.10%
63 3-Jul-06 67.65 0.21% 49.17 0.61%
64
65 Monthly average 1.59% 0.46% #VALUE!
66 Monthly variance 0.93% 0.52% #VALUE!
Monthly standard
67
deviation 9.63% 7.19% #VALUE!
68
69 Annual average 19.07% 5.47% #VALUE!
70 Annual variance 11.14% 6.20% #VALUE!
Annual standard
71
deviation 33.37% 24.90% #VALUE!