Bartman Industries' and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends. Data as given in the problem are shown below: Bartman Industries Reynolds Inc. Winslow 5000 Year Stock Price Dividend Holding period return Stock Price Dividend Holding period return Includes Divs. Holding period return 2020 $17.25 $1.15 24.75% $48.75 $3.00 -1.05% 11,663.98 32.76% 2019 14.75 1.06 -4.18% 52.30 2.90 13.23% 8,785.70 1.22% 2018 16.50 1.00 62.79% 48.75 2.75 -10.04% 8,679.98 34.91% 2017 10.75 0.95 2.90% 57.25 2.50 -0.42% 6,434.03 14.85% 2016 11.37 0.90 61.02% 60.00 2.25 11.66% 5,602.28 19.05% 2015 7.62 55.75 4,705.97 Standard deviation 31.49% Standard Deviation 9.71% Standard Deviation 13.82% 5-year average return (Return) 29.46% 2.68% 20.56% Standard Deviation (Risk) 31.49% 9.71% 13.82% Coefficients of Variation (CV) (sd / mean) 1.07 3.63 0.67 A) Which stock seems to be the most risky one on a stand-alone basis? Bartman or Reynolds? B) Which stock seems to be the most risky one on a CV basis? Bartman or Reynolds?
Bartman Industries' and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends. Data as given in the problem are shown below: Bartman Industries Reynolds Inc. Winslow 5000 Year Stock Price Dividend Holding period return Stock Price Dividend Holding period return Includes Divs. Holding period return 2020 $17.25 $1.15 24.75% $48.75 $3.00 -1.05% 11,663.98 32.76% 2019 14.75 1.06 -4.18% 52.30 2.90 13.23% 8,785.70 1.22% 2018 16.50 1.00 62.79% 48.75 2.75 -10.04% 8,679.98 34.91% 2017 10.75 0.95 2.90% 57.25 2.50 -0.42% 6,434.03 14.85% 2016 11.37 0.90 61.02% 60.00 2.25 11.66% 5,602.28 19.05% 2015 7.62 55.75 4,705.97 Standard deviation 31.49% Standard Deviation 9.71% Standard Deviation 13.82% 5-year average return (Return) 29.46% 2.68% 20.56% Standard Deviation (Risk) 31.49% 9.71% 13.82% Coefficients of Variation (CV) (sd / mean) 1.07 3.63 0.67 A) Which stock seems to be the most risky one on a stand-alone basis? Bartman or Reynolds? B) Which stock seems to be the most risky one on a CV basis? Bartman or Reynolds?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Bartman Industries' and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends.
| Data as given in the problem are shown below: | ||||||||
| Bartman Industries | Reynolds Inc. | Winslow 5000 | ||||||
| Year | Stock Price | Dividend | Holding period return | Stock Price | Dividend | Holding period return | Includes Divs. | Holding period return |
| 2020 | $17.25 | $1.15 | 24.75% | $48.75 | $3.00 | -1.05% | 11,663.98 | 32.76% |
| 2019 | 14.75 | 1.06 | -4.18% | 52.30 | 2.90 | 13.23% | 8,785.70 | 1.22% |
| 2018 | 16.50 | 1.00 | 62.79% | 48.75 | 2.75 | -10.04% | 8,679.98 | 34.91% |
| 2017 | 10.75 | 0.95 | 2.90% | 57.25 | 2.50 | -0.42% | 6,434.03 | 14.85% |
| 2016 | 11.37 | 0.90 | 61.02% | 60.00 | 2.25 | 11.66% | 5,602.28 | 19.05% |
| 2015 | 7.62 | 55.75 | 4,705.97 | |||||
| Standard deviation | 31.49% | Standard Deviation | 9.71% | Standard Deviation | 13.82% | |||
| 5-year average return (Return) |
29.46% | 2.68% | 20.56% | |||||
| Standard Deviation (Risk) |
31.49% | 9.71% | 13.82% | |||||
| Coefficients of Variation (CV) |
(sd / mean) | 1.07 | 3.63 | 0.67 |
A) Which stock seems to be the most risky one on a stand-alone basis? Bartman or Reynolds?
B) Which stock seems to be the most risky one on a CV basis? Bartman or Reynolds?
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