Introduction to Financial Risk Analysis
Risks of a single stock
Setup a spreadsheet to analyze data from Yahoo Finance. There should be tabs for worksheets to:
- Save raw data from Yahoo Finance
- Perform calculations
- Display analysis
Use the historical pricing data from Yahoo Finance
Select monthly data for a period of 10 years
the raw data:
(or copy) into the source worksheet of the spreadsheet:
The raw pricing data might look similar to this:
Historical pricing data from Yahoo Finance has already been adjusted for dividend payments and other material changes to the stock.
Calculate the monthly returns
and the 5 year periodic returns on a separate worksheet by linking to values in the raw import worksheet.
( current price – previous month price ) ÷ previous month price = monthly rate of return
Setup and calculate summary analysis of the historical prices for the stock.
Use the following formulas for the summary calculations.