A6) Consider the following annual closing prices of stock A and stock B.CARABDateStock A Prices (in $) Stock 8 Prices (in $)813788637578452876810387105102117969491781001234689Year 1Year 2Year 3Year4YearYearYear 7Year 8Year 91611 Year1956O 3.05 %O 3.81 %O 2.28%O 0.76%9101112 Year13 Year14 Year15 Year 1416 Year 1517182345390339494442450438427392440370334465DIf you had invested 10 percent of your total investment on stock A and 90 percent on stock B at thebeginning of the period, what would be the historical mean of the portfolio consisting of these twostocks?

Return for each period is calculated from the price and then mean is determined. Potfolio return is…

Consider the following annual closing prices of stock A and stock B. B Date: Stock A Prices (in $) Stock 8 Prices (in $) 81 86 78 87 68 103 87 105 G 8 Year 1 Year 2 Year 3 Year 4 Year S Year 6 Year 7 Year 8 167 9 @6 O 3.05 % O 3.81 % O 2.28% O 0.76% 10 Year 11 Year 12 Year 11 13 Year 14 Year 13 15 Year 14 16 Year 15 17 18 10 12 12 102 117 96 94 91 78 100 378 375 452 390 339 494 442 450 438 427 392 440 370 334 465 D If you had invested 10 percent of your total investment on stock A and 90 percent on stock B at the beginning of the period, what would be the historical mean of the portfolio consisting of these two stocks?

Consider the following annual closing prices of stock A and stock B. B Date: Stock A Prices (in $) Stock 8 Prices (in $) 81 86 78 87 68 103 87 105 G 8 Year 1 Year 2 Year 3 Year 4 Year S Year 6 Year 7 Year 8 167 9 @6 O 3.05 % O 3.81 % O 2.28% O 0.76% 10 Year 11 Year 12 Year 11 13 Year 14 Year 13 15 Year 14 16 Year 15 17 18 10 12 12 102 117 96 94 91 78 100 378 375 452 390 339 494 442 450 438 427 392 440 370 334 465 D If you had invested 10 percent of your total investment on stock A and 90 percent on stock B at the beginning of the period, what would be the historical mean of the portfolio consisting of these two stocks?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.2.2MBA

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