Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Rate of return, standard deviation, coefficient of variation Mike is searching for a stock to include in his current stock portfolio. He is interested in Apple Inc.; he has been impressed with the company's computer products and believes Apple is an innovative market player. However, Mike realizes that any time you consider a so-called high-tech stock, risk is a major concern. The rule he follows is to include only securities with a coefficient of variation of returns below 0.90.Mike has obtained the following price information for the period 2006 through 2009. Apple stock, being growth-oriented, did not pay any dividends during these 4 years.
a. Calculate the rate of return for each year, 2006 through 2009, for Apple stock.
b. Assume that each year's return is equally probable and calculate the average return over this time period.
c. Calculate the standard deviation of returns over the past 4 years.
d. Eased on b and c determine the coefficient of variation of returns for the security.
e. Given the calculation in d what should be Mike's decision regarding the inclusion of Apple stock in hisportfolio?
1. Airy Window Units sells air conditioners for $125 per unit, and the variable cost to produce them is $87. The owner estimates that the fixed costs are $4,186,000.
is an insurance company required to estimate separate risk margins for each significant assumption used to measure fair
One-year T-bill rates are expected to steadily increase by 150 basis points per year over the next six years. Determine the required interest rate on a three-year T-bond and a six-year T-bond if the current one-year interest rate is 7.5%. Assume that..
maria is debating between two different mortgages for 155000. she found a 20-year fixed rate loan at 7.35 and 15-year
What is the promised yield to maturity based on the terms suggested by the investment banker?
In preparation for preparing the financial statements for Boonville Public Health Center, you need to review the financial reporting requirements for governmental and nonprofit organizations.
Given the current state of the economy and our financial markets, is it more desirable for firms to increase money through debt or through equity at this time.
Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. If annual interest rates go up by 1.00 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, and round to the nearest w..
vanderheiden press inc. and the herrenhouse publishing company had the following balance sheets as of december 31 2002
Which of the following investments has a larger future value: Investment A an $1,000 investment earning 5% per year for 6 years? Or Investment B a %500 investment earning 10% per year for 6 years with a bonus of an extra $500 added at the end of t..
The stock of Big Joe's has a beta of 1.50 and an expected return of 12.60 percent. The risk-free rate of return is 5.1 percent. What is the expected return on the market?
Suppose you are estimating the value of a shopping center by the income approach. You have determined that the gross rental income will be $225,000 each year and that the operating expenses will equal $35,000 each year. A similar center in the same a..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd