Executive summary
The paper analyzes the stock return of Apple Inc. and CVS Health Corporation over the past 131 months. Although the stock return for both companies is approximately normally distributed, Apple Inc. has higher mean return as compared to CVS. The range and standard deviation for Apple stock return were however higher indicating higher risk due to variability of stock return. Using normal probabilities Apple Inc. proved enhanced profitability potential. Contrary, CVS stocks proved a higher chance of making a loss. The analysis relies on historical data which may not accurately reflect the future due to potential organizational changes.
Table 1 : Descriptive Statistics for CVS Health Corporation Stock Return
|
CVS Health Corporation (CVS) Return |
|
| Mean |
0.78% |
| Standard Error |
0.58% |
| Median |
0.72% |
| Standard Deviation |
6.66% |
| Sample Variance |
0.44% |
| Skewness |
-18.16% |
| Range |
36.67% |
| Minimum |
-18.30% |
| Maximum |
18.36% |
| Count |
131 |
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