Consider the companies' data to calculate annual rates of return. Determine the average return for each figure over the 5-year period. (You will not be able to calculate the 2014 rate of return, because you do not have data for 2013). 2. Calculate the standard deviation from the returns of Power Electric Industries, Riviera Power Inc. and Nature Energy Corp. You can use the function in the Microsoft Excel application (STDEV). 3. Calculate the coefficients of variation of the companies.
The analysis of risk and the search for yield in companies is determinant for financial success. In this case, consider the stock price and dividends of the companies Power Electric Industries, Riviera Power Inc. and Nature Energy Corp. for the period from 2014 to 2019.
| Power Electric Industries | Power Electric Industries | Riviera Power Inc. | Riviera Power Inc. |
Nature Energy Corp. |
Nature Energy Corp. |
|
| year | Year Stock price | Dividends | Year Stock price | Dividends | Year Stock price | Dividends |
|
2019 |
$18.5 |
$1.50 |
$38.5 |
$4.50 |
$58.5 |
$3.50 |
|
2018 |
$15.93 |
$1.10 |
$40.93 |
$3.10 |
$50.93 |
$2.10 |
|
2017 |
$10.20 |
$1.00 |
$43.20 |
$3.00 |
$53.20 |
$3.00 |
|
2016 |
$9.80 |
$0.90 |
$50.80 |
$2.90 |
$50.80 |
$2.90 |
|
2015 |
$8.50 |
$0.85 |
$48.50 |
$2.85 |
$48.50 |
$2.75 |
|
2014 |
$8.00 |
$0.80 |
$45.00 |
$2.80 |
$45.00 |
$2.60 |
1. Consider the companies' data to calculate annual
2. Calculate the standard deviation from the returns of Power Electric Industries, Riviera Power Inc. and Nature Energy Corp. You can use the function in the Microsoft Excel application (STDEV).
3. Calculate the coefficients of variation of the companies.
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