Solution-Find volatility of the returns and growth rate

Find volatility of the returns and growth rate

Assignment Help Finance Basics

Reference no: EM133069721

The table below contains the Return on Assets (ROA) and the growth in sales for two publicly traded hospitality firms - one restaurant and the other a hotel. Compute the mean and standard deviation of the ROA and sales growth. Based on the volatility of the returns and growth rate, identify which of the firms is the hotel and which one is the restaurant. Justify your choice.

*Date*	Firm A		Firm B
	ROA	Sales Growth		ROA	Sales Growth
*12/31/2019*	5%	1%		13%	0%
*12/31/2018*	8%	-9%		18%	-8%
*12/31/2017*	6%	34%		15%	-7%
*12/31/2016*	3%	18%		15%	-3%
*12/31/2015*	14%	5%		12%	-7%
*12/31/2014*	11%	8%		14%	-2%
*12/31/2013*	9%	8%		15%	2%
*12/28/2012*	9%	-4%		15%	2%
*12/30/2011*	3%	5%		17%	12%
*12/31/2010*	5%	7%		15%	6%

Reference no: EM133069721

Questions Cloud

Mexican utility payable : Boing sold $400 million in turbines to a Mexican utility payable in 6 months and $600 million to a Spain utility payable in 1 year.

Effective in eliminating corporate scandals : Reflect on the business climate in corporate America and if the Sarbanes-Oxley has been effective in eliminating corporate scandals.

Bus8105-review of the literature is the foundation : BUS8105-A thorough review of the literature is the foundation for all aspects of your dissertation. Continue reviewing the literature

Corporate governance and strategic planning : What are the responsibilities of top management and leaders in relation to corporate governance and strategic planning?

Find volatility of the returns and growth rate : The table below contains the Return on Assets (ROA) and the growth in sales for two publicly traded hospitality firms - one restaurant and the other a hotel. C

Find equal annual positive cash flows : You are considering a long-term agricultural project that will require an investment of $45,000 per year for 4 years (beginning year 1) and will generate positi

Estimate the exected free cash flow to equity : Dionex Corporation, a leader in the development and manufacturing of ion chromography systems, reported EPS of $2.02 in 1993 and paid no dividends. These earnin

Forecast future exchange rate : How to forecast the future exchange rate in the short and long term?

Calculate the npv of the loan financing : CDE borrows $14,213 at a subsidized rate of 3.6% to invest in a project. The project lasts for 11 years and CDE repays the loan at the end of the project. If AB

User Account

All Pages

Find volatility of the returns and growth rate

Reference no: EM133069721

Reference no: EM133069721

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT