The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends.Construct a scatter diagram graph that shows Goodman’s and Landry’ returns on the vertical axis and the Market Index’s returns on the horizontal axis. ACDF12 a. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and thencalculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtractingthe beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital5 gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in theindex. Also, you cannot calculate the rate of return for 2015 because you do not have 2014 data.)478Data as given in the problem are shown below:9.Goodman IndustriesLandry IncorporatedMarket Index10YearStock PriceDividendStock PriceDividend Includes Divs.$30.32$2.23$2.65$2.73$2.57$2.23$2.25$85.12$79.32$74.32$87.12$95.12$84.25$3.52$3.65$3.45$3.47$3.55$3.2511202018,475.9712,174.5512,019.9710,743.059,455.428,163.962019$23.53$28.61$15.21$12.63$13.21121320181420171520161620151718 We now calculate the rates of retun for the two companies and the index:1920GoodmanLandryIndex2120202220192320182420172520162627 Average2829 Note: To get the average, you could get the column sum and divide by 5, but you could also use the function30 wizard, fx. Click fx, then statistical, then Average, and then use the mouse to select the proper range. Do this for31 Goodman and then copy the cell for the other items.32 AВCEF43 c. Construct a scatter diagram graph that shows Goodman's and Landry' returns on the vertical axis and the44 Market Index's returns on the horizontal axis.4546 It is easiest to make scatter diagrams with a data set that has the X-axis variable in the left column,47 so we reformat the retums data calculated above and show it just below.4849 YearIndexGoodmanLandry0.0%0.0%5020200.0%0.0%5120190.0%0.0%5220180.0%0.0%0.0%5320170.0%0.0%0.0%5420160.0%0.0%0.0%555657585960616263646566676869707172 To make the graph, we first selected the range with the returns and the column heads, then clicked the chart wizard,73 then choose the scatter diagram without connected lines. That gave us the data points. We then used the drawing74 toolbar to make free-hand ("by eye") regression lines, and changed the lines color and weights to match the dots.7576

Name: The attached file contains hypothetical data for working this problem.
Uploaded: 2024-03-20T07:06:16.000Z
Channel: Bartleby
Description: The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each y