Calculate the rate of return over the last day as a daily percentage ?

Question

Here's the question: a company opened the day at $12.9 and closed the day at $11.7. The All Ordinaries opened at 6,316 and closed at 6,383.5.

Now calculate: a) the rate of return (r) on the company over the last day as a daily percentage; b) the rate of return on the All Ordinaries index (rm) over the last day as a daily percentage; c) the excess return of the company compared to the market over the last day as a daily percentage.

Thank u in advance!!

Answer 1

Rate of return on the company = ((11.7 - 12.9)/12.9) x 100 = -9.3%

Rate of return on All Ordinaries = ((6383.5 - 6316)/6316) x 100 = 1.1%

Excess return = -9.3% - 1.1% = -10.4%