Assume that the spreadsheet below shows the closing prices for the S&P 500 Index
ID: 2824772 • Letter: A
Question
Assume that the spreadsheet below shows the closing prices for the S&P 500 Index for the month of November 2012. Using a column with six decimal places:
a. Calculate the daily percentage changes in the S&P 500 Index. The last daily change is for 11/1/2012, resulting in 21 daily changes.
b. Calculate the average daily change in the Index, shown to 6 decimal places.
c. State the average daily change in the S&P500 Index for the month of November 2012 as a
percentage.
d. State the implied monthly change in the S&P 500 Index for the month of November 2012 as a percentage. (Notice the word implied—this in fact is not the correct percentage change for the month, as we will learn when we discuss the difference between the arithmetic mean and the geometric mean).
Date Closing Pr
11/30/2012 1,400.38
11/29/2012 1,398.26
11/28/2012 1,390.84
11/27/2012 1,385.35
11/23/2012 1,375.93
11/22/2012 1,394.35
11/21/2012 1,390.71
11/20/2012 1,413.4
11/19/2012 1,426.63
11/16/2012 1,425.35
11/15/2012 1,423.57
11/14/2012 1,408.66
11/13/2012 1,403.04
11/12/2012 1,403.58
11/9/2012 1,388.28
11/8/2012 1,397.68
11/7/2012 1,392.57
11/6/2012 1,418.26
11/5/2012 1,407.49
11/2/2012 1,413.9
11/1/2012 1,409.34
10/31/2012 1,385.59
Average =
Explanation / Answer
Daily chnage = (Day price-previous day price)/Day price
Avergae change is average of 20 daily changes
Monthly change = (Price on 30 Nov- Price on 31st Oct)/(Price on 31st October)
Date Price Percentage change 30-Nov 1,400.38 0.001516 29-Nov 1,398.26 0.005335 28-Nov 1,390.84 0.003963 27-Nov 1,385.35 0.006846 23-Nov 1,375.93 -0.01321 22-Nov 1,394.35 0.002617 21-Nov 1,390.71 -0.01605 20-Nov 1,413.40 -0.00927 19-Nov 1,426.63 0.000898 16-Nov 1,425.35 0.00125 15-Nov 1,423.57 0.010585 14-Nov 1,408.66 0.004006 13-Nov 1,403.04 -0.00038 12-Nov 1,403.58 0.011021 09-Nov 1,388.28 -0.00673 08-Nov 1,397.68 0.003669 07-Nov 1,392.57 -0.01811 06-Nov 1,418.26 0.007652 05-Nov 1,407.49 -0.00453 02-Nov 1,413.90 0.003236 01-Nov 1,409.34 0.017141 31-Oct 1,385.59 Average change 0.000545 As percentage 0.0545% Monthly change 1.067%