Benchmarking

Financial Analytics in Google Sheets

David Ardia

Professor in Quantitative Methods for Finance

What is a "benchmark"?

  • Can be any stock or financial index whose nature or return-risk expectations is similar to your investment

  • A benchmark tells you if you made a good investment or not
Financial Analytics in Google Sheets

Benchmark for stock ABC

  • ABC is a traded share of a US company

  • A good benchmark is the US market index

    • Summarizes the performances of the major companies traded in the US stock market

  • Did ABC perform better than US stock on average?

Financial Analytics in Google Sheets

Benchmarking with cumulative wealth

Financial Analytics in Google Sheets

Benchmarking with cumulative wealth

Financial Analytics in Google Sheets

Benchmarking with cumulative wealth

Financial Analytics in Google Sheets

Benchmarking with cumulative wealth

Financial Analytics in Google Sheets

Cumulative wealth with Google Sheets

Financial Analytics in Google Sheets

Cumulative wealth with Google Sheets

Financial Analytics in Google Sheets

Cumulative wealth with Google Sheets

Financial Analytics in Google Sheets

Cumulative wealth with Google Sheets

Financial Analytics in Google Sheets

It's time to practice!

Financial Analytics in Google Sheets

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