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How to calculate average stock returns in Excel In the following example, I'll calculate the returns for Microsoft stock using historical prices and dividends. The first step is to get organized.
The purpose of the two-stock regression analysis is to determine the relationship between returns of two stocks. With some pairs of stocks, the two stock prices will tend to move in tandem.
In a previous post, we presented a method for calculating a stock beta and implemented it in Python. In this follow-up post, we are going to implement the calculation in Excel.
Discover what a log-normal distribution is, its financial applications, and how to calculate it, including using Excel for practical financial analysis.