I'm not following this problem at all I understand the terms such as median quartile and such but I just don't understand stocks so can you lend me a hand
The rate of return on a stock is its change in price plus any dividends paid, usually measaured in percen of the srating value. We have data on the monthly rate of return ofr the stock of Wal-Mart stors fro the years 1973 to 1991, the first 19 years Wal-Mart was listed on the New York Stock Exchange. There are 228 observations. Here is the output from the computer statistical package SPLUS that describes the distribution of these data
the book then give 5 number summary then the stemp plot with the outliers listed separately
the question
If you had 1 grand worht of Wal-Mart stock at the beginning fo the best month during these 19 years, how much would your stock be worth at the end of the month?
The highest outlier listed separately is
58.67769
so I'm not exaclty sure what to do what that number and 1 grand to find the value at the end of the month...
thanks!
We do not have the data that you have in your book. In addition, you have so many typos, it is hard to decipher what you are saying.
If you want, repost with adequate data without typos, and we will attempt to help.
To find out how much your stock would be worth at the end of the month if you had invested $1,000 in Wal-Mart stock at the beginning of the best month, you would need to calculate the return on investment.
First, you need to identify the rate of return for the best month, which is not directly given in the information you provided. However, since you mentioned that there is statistical output with a five-number summary, including the highest outlier, you can assume that the highest outlier value of 58.67769 represents the rate of return for the best month.
To calculate the ending value of the stock, you need to multiply the rate of return by the initial investment. Given that the rate of return is expressed as a percentage, you need to convert it to a decimal by dividing it by 100.
So, the calculation would be:
Ending value = Initial investment + (Initial investment * (Rate of return / 100))
In this case, the initial investment is $1,000, and the rate of return is 58.67769%. Therefore, the calculation would be:
Ending value = $1,000 + ($1,000 * (58.67769 / 100))
To get the final answer, simply perform the calculation using a calculator or any other means of performing arithmetic. The result will give you the value of your Wal-Mart stock at the end of the best month during those 19 years of observations.