Using Excel, whats the best way to measure stock performance vs. and index fund's performance?

What formula would you recommend inorder to measure the performance of one stock vs. the performance of an index fund or other stock in a given period of time.

I'd like to use Excel rather than an automatic chart make, so that I can maniuplate the data and choose an index marker of my own.

I would not use Excel.

fianace.yahoo.com will do that for you.

Here's IBM versus the S&P 500 for 5 years. This takes about 10 seconds to construct.

http://finance.yahoo.com/q/bc?t=5y&s=IBM...

Why reinvent the wheel? Use www.msn.com finance for this. The charts are automatic and updated minute by minute.

Let's say cells A2:A61 contain monthly returns of your stock for the last five years, while cells B2:B61 contain monthly returns of the benchmark index for the last five years. Now you can generate a lot of interesting statistics:

=AVERAGE(A2:A61)
=AVERAGE(B2:B61)
These are monthly arithmetic average returns on your stock and benchmark.

=STDEV(A2:A61)
=STDEV(B2:B61)
These are monthly volatilities on your stock and benchmark.

=INTERCEPT(A2:A61, B2:B61)
This is the alpha of your stock relative to the benchmark.

=SLOPE(A2:A61, B2:B61)
This is the beta of your stock relative to the benchmark.

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　　Hedge Fund 　　Gold Investment 　　Global Investment 　　Fund Portfolio 　　Fund Performance 　　Fund Manager 　　Fund Management 　　Forex 　　Foreign Investment

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