AAII Program #3
                              Stock Statistics (STATS)
                                          
                              (c) Copyright 1982 by the
                               American Association of
                                Individual Investors
          
          
          For a single stock, the program will give annual standard
          deviation, annual variance, arithmetic mean, and geometric mean
          rate of return.  The time intervals between prices should be
          equivalent, and the program will ask if it is annual, quarterly,
          or monthly data.  A minimum of five prices is suggested.  Since
          price changes are measured, five prices give four readings.
          
          If a second stock or market index is also given, the program will
          give Alpha, Beta, R, and R-squared.
          
               Alpha is the annual yield in excess of the average
               market yield.
               Beta is an index of volatility relative to the market
               average of 1.00.
               R is the correlation between price changes of the stock
               and the market as a whole.
               R-squared (coefficient of determination indicates the
               percent of the stock's volatility (risk) explained by
               movement of the market as a whole.
          
          For the market figure, any market index (S&P, DJIA, M/G) can be
          used.  S&P is most common in published betas.  Most raw beta
          figures are adjusted for regression bias.  We use the adjustment
          suggested by Marshall Blume.  This program can also be used to
          check the correlation between two stocks.  Simply put in the
          price of the second stock in place of the market figures.  The R
          obtained is used in models to find efficiently diversified
          portfolios.