1. Use Bartman Industries and Reynolds Incorporated's stock prices and dividends, along with the Market Index, shown below for the period 1997-2002 to answer the following questions Data as given in the problem are shown below: Bartman Industries Year 2002 2001 2000 1999 1998 1997 Stock Price $17.250 14.750 16.500 10.750 11375 7.625 Dividend $1.150 1.060 1.000 0.950 0.900 0.850 Reynolds Incorporated Stock Price $48.750 52.300 48.750 57.250 60.000 55.750 Dividend $3.000 2.900 2.750 2.500 2.250 2.000 Market Index Includes Divs. 11,663.98 8,785.70 8,679.98 6,434.03 5,602.28 4,705.97 a. Use the data given to calculate annual returns for Batman. Reynolds, and the Market Index, and then calculate average returns over the 5-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 1997 because you do not have 1996 data.) b. Calculate the standard deviations of the returns for Batman, Reynolds, and the Market Index.
1. Use Bartman Industries and Reynolds Incorporated's stock prices and dividends, along with the Market Index, shown below for the period 1997-2002 to answer the following questions Data as given in the problem are shown below: Bartman Industries Year 2002 2001 2000 1999 1998 1997 Stock Price $17.250 14.750 16.500 10.750 11375 7.625 Dividend $1.150 1.060 1.000 0.950 0.900 0.850 Reynolds Incorporated Stock Price $48.750 52.300 48.750 57.250 60.000 55.750 Dividend $3.000 2.900 2.750 2.500 2.250 2.000 Market Index Includes Divs. 11,663.98 8,785.70 8,679.98 6,434.03 5,602.28 4,705.97 a. Use the data given to calculate annual returns for Batman. Reynolds, and the Market Index, and then calculate average returns over the 5-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 1997 because you do not have 1996 data.) b. Calculate the standard deviations of the returns for Batman, Reynolds, and the Market Index.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
100%
![1. Use Bartman Industries and Reynolds Incorporated's stock prices and dividends, along
with the Market Index, shown below for the period 1997-2002 to answer the following
questions
Data as given in the problem are shown below:
Bartman Industries
Year
2002
2001
2000
1999
1998
1997
Stock
Price
$17.250
14.750
16.500
10.750
11375
7.625
Dividend
$1.150
1.060
1.000
0.950
0.900
0.850
Reynolds Incorporated
Stock Price
$48.750
52.300
48.750
57.250
60.000
55.750
Dividend
$3.000
2.900
2.750
2.500
2.250
2.000
Market Index
Includes Divs.
11,663.98
8,785.70
8,679.98
6,434.03
5,602.28
4,705.97
a. Use the data given to calculate annual returns for Batman. Reynolds, and the Market
Index, and then calculate average returns over the 5-year period. (Hint: Remember, returns
are calculated by subtracting the beginning price from the ending price to get the capital
gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the
beginning price. Assume that dividends are already included in the index. Also, you cannot
calculate the rate of return for 1997 because you do not have 1996 data.)
b. Calculate the standard deviations of the returns for Batman, Reynolds, and the Market
Index.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40ac6cb4-8eea-477d-a0ba-04fb16d984de%2Fe2267936-4372-439c-9425-b38d03115018%2Fk36z9bq_processed.png&w=3840&q=75)
Transcribed Image Text:1. Use Bartman Industries and Reynolds Incorporated's stock prices and dividends, along
with the Market Index, shown below for the period 1997-2002 to answer the following
questions
Data as given in the problem are shown below:
Bartman Industries
Year
2002
2001
2000
1999
1998
1997
Stock
Price
$17.250
14.750
16.500
10.750
11375
7.625
Dividend
$1.150
1.060
1.000
0.950
0.900
0.850
Reynolds Incorporated
Stock Price
$48.750
52.300
48.750
57.250
60.000
55.750
Dividend
$3.000
2.900
2.750
2.500
2.250
2.000
Market Index
Includes Divs.
11,663.98
8,785.70
8,679.98
6,434.03
5,602.28
4,705.97
a. Use the data given to calculate annual returns for Batman. Reynolds, and the Market
Index, and then calculate average returns over the 5-year period. (Hint: Remember, returns
are calculated by subtracting the beginning price from the ending price to get the capital
gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the
beginning price. Assume that dividends are already included in the index. Also, you cannot
calculate the rate of return for 1997 because you do not have 1996 data.)
b. Calculate the standard deviations of the returns for Batman, Reynolds, and the Market
Index.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 7 steps with 7 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![Elementary Statistics: Picturing the World (7th E…](https://www.bartleby.com/isbn_cover_images/9780134683416/9780134683416_smallCoverImage.gif)
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
![The Basic Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319042578/9781319042578_smallCoverImage.gif)
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
![Introduction to the Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319013387/9781319013387_smallCoverImage.gif)
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman