<http://lib.cnfolio.com/RiskAnalysisNotes04>

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 to select **daily prices for a period of 1 year**.

**Download** the raw data:

**Import** (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 **daily returns for the most recent 251 days** (that will result in **250 values**) on a separate worksheet by linking to values in the raw import worksheet.

( current price – previous daily price ) ÷ previous daily price = daily rate of return

The cumulative frequency is dependent on having

Calculate the **standard deviation for the daily and weekly rates of return** at the **1%, 2% and 5% confidence levels**.

Use the following formulas:

Use the following formulas:

Combine the historical method and parametric methods to calculate the **value at risk**:

Use the following formulas:

Use the following formulas: