Based on five years of monthly data, you derive the following information for the companies listed:Companya (Intercept)Intel0.2411.00 %0.67Ford0.1313.600.20Anheuser Busch0.166.400.69Merck0.0610.200.60SAP S000.004.501.00a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places.Entel:5.091 XFord:0.538 XAnheuser Busch:2 XMerck:2 X

Financial statements are statements which states the business activities performed by the company .…

Based on five years of monthly data, you derive the following information for the companies listed: Company a (Intercept) Intel 0.67 0.24 11.00 % Ford 0.13 13.60 0.20 Anheuser Busch 0.16 6.40 0.69 Merck 0.06 10.20 0.60 SAP 500 0.00 4.50 1.00 a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places. Intel: 5.091 X Ford: 0.538 X Anheuser Busch: 2 X Merck:

Based on five years of monthly data, you derive the following information for the companies listed: Company a (Intercept) Intel 0.67 0.24 11.00 % Ford 0.13 13.60 0.20 Anheuser Busch 0.16 6.40 0.69 Merck 0.06 10.20 0.60 SAP 500 0.00 4.50 1.00 a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places. Intel: 5.091 X Ford: 0.538 X Anheuser Busch: 2 X Merck:

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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cks A and B have the following historical returns: Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (17.90%) 30.00 13.25 (3.50) 29.75 Stock B's Returns, ra (14.20%) 22.70 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A 39.50 (7.10) 10.70 Stock B b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock 8. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Year 2016 2017 2018 2019 2020 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. Portfolio CV e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? ele Calculate the standard deviation of returns for each stock and for the portfolio. Hound your answers to two decimal places.…
The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and the volatility for each stock. (Click on the following icon in order to copy its contents into a spreadsheet.) Month January February March April May June July August September October November The average monthly return for Cola Co. is%. (Round to two decimal places.) Cola Co. -7.10% -2.10% -3.80% -4.10% 1.50% 1.20% -21.10% - 14.50% - 28.80% 22.90% -13.40% Gas Co. -8.10% -2.00% -2.60% -5.00% -4.70% -3.20% 6.70% -8.50% - 12.60% 16.50% -6.10%
he table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.) IBM AMZN January $ 173.24 $ 609.06 February 175.69 619.88 March 187.69 578.30 April 203.79 546.50 May 193.81 516.54 June 207.25 499.18 July 230.50 605.49 August 207.85 538.26 September 219.11 513.48 October 214.23 598.70 November 194.99 594.17 December 174.78 652.50
Your broker mailed you your year-end statement. You have P250,000 invested in Happy Chemical, P180,000 tied up in Honey Pie Co., P360,000 in Sweet Candy and P110,000 in MyBabeCorp. The annualized returns for thee stock is 16.5% for Happy; 12% for Honey; 18.5% for Sweet and 15.3% for MyBabe. What is the return of your entire portfolio?
If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company: Year 1 Year 2 Year 3 Year 4 High $87.93 $100.35 $121.89 $133.60 Low price 69.85 83.19 79.99 110.18 EPS 6.54 8.96 8.62 10.21 Earnings are expected to grow at 5.5 percent over the next year. a. What is the high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. High target price b. Low target price price
You have found the following stock quote for RJW Enterprises, Incorporated, in the financialpages of today's newspaper. YTD % Change Stock SYM YLD PE Last Net Change -1.1 RJWEnterprises RWJ 2.5 15 108.00-.42 a. What is the annual dividend? (Do not roundintermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Whatwas the closing price for this stock that appeared in yesterday's paper c. If the companycurrently has 30 million shares of stock outstanding, what was net income for the most recentfour quarters? (Do not round intermediate calculations and enter your answer in dollars, notmtermediate calculations and round your answer to 2 decimal
The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.) January February Marchi April May June July August September October November December IBM $172.04 174.89 185.17 201.13 194.77 206.33 227.84 210.31 AMZN $606.16 617.72 581.12 545.70 520.70 501.58 604.89 539.16 514.00 596.68 194.09 595.91 174.22 650.30 218.15 213.99
You find a certain stock that had returns of 16 percent, −23 percent, 24 percent, and 9 percent for four of the last five years. The average return of the stock over this period was 10.2 percent. a. What was the stock’s return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What is the standard deviation of the stock’s returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
A company has an EPS of $3.30, a book value per share of $32.34, and a market/book ratio of 3.1x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Do not round intermediate calculations. Round your answers to two decimal places.
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The table below shows the closing monthly stock prices for Penn Company and Teller, Incorporated. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. Note: Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places. Penn Teller January $ 175.04 $ 613.41 February 176.89 623.12 March 191.47 574.07 April 207.78 547.70 May 192.37 510.30 June 208.63 495.58 July 234.49 606.39 August 204.16 536.91 September 220.55 512.70 October 214.59 601.73 November 196.34 591.56 December 175.62 655.80
Go to Yahoo.com’s financial website and enter Apple, Inc.’s stock symbol, AAPL. Answer the following questions concerning Apple, Inc. At what price did Apple’s stock last trade? What is the 52-week range of Apple’s stock? When was the last time Apple’s stock hit a 52-week high? What is the annual dividend of Apple’s stock? How many current broker recommendations are strong buy, buy, hold, sell, or strong sell? What is the average of the broker recommendations? What is the price-earnings ratio?

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