4. Calculate the standard deviation of the historical returns compared to the mean determined in Step 3. In Excel, this can be achieved by using the STDEV function. 5.

There are two methods to calculate NPV in Excel. You can use the basic formula, calculating the present value of each component for each year individually and then summing them all up.

Knowing the absolute return doesn’t help much as it does not take into account the period over which such a return has been generated. For example, an investment of Rs 10,000 grows to Rs 30,000 ...