Considering additional investments

Assignment Help Financial Management

Reference no: EM131310941

The Allied Group has acquired Kramer Industries and is now considering additional investments. They have determined that there is a firm that is a good fit for their portfolio, the Kramer firm of Montana. The firm was established in 1990 and has the following historical returns: Kramer Industries Year Earnings 1990 (8% Loss) 1995 23% 2000 26% 2005 31% 2010 18% Questions: Address all of the following questions in a brief but thorough manner. •What was the average return for the stock over the period of 1990 through 2010? •What was the standard deviation for the stock over this period? •Assume that you currently have a portfolio that returns 19.5%. If you add this stock to the current portfolio, what would happen to the average return on the portfolio? •Should Allied invest in the stock? Justify your response.

Reference no: EM131310941

Questions Cloud

Prepare sales presentation that supported by creative sales : You will prepare a sales presentation that is supported by creative sales promotions as you assume the role of the new marketing associate for U Drive Transport

Investigate building your own home network : If you were to get a high-speed Internet connection like DSL or cable modem, how much would it cost? Can you buy your own, or would you have to rent the modem from the phone or cable company?

Calculate liabilities-to-assets ratio and profit margin : Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.7 Return on assets (ROA) 3% Return on equity (ROE) 7% Calculate Haslam's profit margin. Calculate Haslam's liabilities-to-a..

Describe the company and its main products : Describe the company and its main products. Specify the main benefits of the products and why customers should prefer the products over the competition

Considering additional investments : The Allied Group has acquired Kramer Industries and is now considering additional investments. They have determined that there is a firm that is a good fit for their portfolio, the Kramer firm of Montana. Assume that you currently have a portfolio th..

Demonstrate the impact of wireless technology : How many devices do you own or use that transmit signals wirelessly?- Think of as many as you can, and make a list showing the different types of signaling used by each device.

Find out what you have to buy to install each type : Find out what you have to buy to install each type, how much the antenna costs, how the system would work in your car, and how much the monthly subscription is.

Describe the sales channel for your product : Describe the sales channel for your product (direct or distributor or both) - why did you choose this channel? I.e. What kind of wholesale or retail distribution plans do you have

What yield rate did katherine realize oil her investment : Geoffrey borrows $5,000 from Katherine for a term of 5 years. Geoffrey agrees to pay interest at the end of each year at an effective annual interest rate of 8%, and to repay the entire $5,000 as a lump sum at the end of 5 years. Immediately after th..

User Account

All Pages