<http://lib.cnfolio.com/RiskAnalysisNotes03>
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:

Spreadsheet setup




Use the historical pricing data from Yahoo Finance.

Historical prices at Yahoo Finance


Select monthly data for a period of 10 years.

Historical prices at Yahoo Finance


Download the raw data:

Historical prices at Yahoo Finance


Import (or copy) into the source worksheet of the spreadsheet:

Historical prices import


The raw pricing data might look similar to this:

Historical prices import




Historical pricing data from Yahoo Finance has already been adjusted for dividend payments and other material changes to the stock.

Historical prices have been adjusted for dividend payments




Calculate the monthly returns and the 5 year periodic returns on a separate worksheet by linking to values in the raw import worksheet.

Calculate monthly returns




( current price – previous month price ) ÷ previous month price = monthly rate of return




Setup and calculate summary analysis of the historical prices for the stock.

Summary analysis of historical stock prices




Use the following formulas for the summary calculations.

Formulas for summary calculations