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   Bartman Industries Reynolds Incorporated   Year Stock  Price Div Stock  Price Div Market Returns 2002 $17.250 $1.150 $48.750 $3.000 11,663.98 2001 14.750 1.060 52.300 2.900 8,785.70 2000 16.500 1.000 48.750 2.750 8,676.98 1999 10.750 0.950 57.250 2.500 6,434.03 1998 11.375 0.900 60.000 2.250 5,602.28 1997 7.625 0.850 55.750 2.000 4,705.97   Required:                                                                                                             1. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index,

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
icon
Related questions
Question

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

 

Bartman Industries

Reynolds Incorporated

 

Year

Stock  Price

Div

Stock  Price

Div

Market Returns

2002

$17.250

$1.150

$48.750

$3.000

11,663.98

2001

14.750

1.060

52.300

2.900

8,785.70

2000

16.500

1.000

48.750

2.750

8,676.98

1999

10.750

0.950

57.250

2.500

6,434.03

1998

11.375

0.900

60.000

2.250

5,602.28

1997

7.625

0.850

55.750

2.000

4,705.97

 

Required:                                                                                                            

1. Use the data given to calculate annual returns for Bartman, 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.)

 

2. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Market Index.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Stock Market Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education