a. Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index. Then calculate each entity's average return 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, anddividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 2015 because you do nothave 2014 data.) Round your answers to two decimal places.YearBartman IndustriesReynolds Inc.Winslow 50002020%%%2019%%2018%%2017%%2016%%%Average%%%b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the sample standard deviation formula, which corresponds to theSTDEV.S function in Excel.) Round your answers to two decimal places.Bartman IndustriesReynolds Inc.Winslow 5000Standard deviation%%c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places.Bartman IndustriesReynolds Inc.Winslow 5000Coefficient of variationd. Assume the risk-free rate during this time was 4%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using their average returns. Round youranswers to four decimal places.ABartman IndustriesReynolds Inc.Winslow 5000Sharpe ratio Bartman Industries's 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 areadjusted to include dividends.Bartman IndustriesReynolds Inc.Winslow 5000YearStock PriceDividendStock PriceDividendIncludes Dividends2020$16.40$1.10$47.25$2.95$11,765.33201914.151.0150.402.909,009.82201815.850.9547.252.808,921.71201710.450.9055.952.506,473.05201610.870.8558.802.205,602.1120157.420.8054.251.904,697.95A-ZThe data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediatecalculations. Use a minus sign to enter negative values, if any.gofficeDownload spreadsheet Evaluating Risk and Return-e44a6d.xlsxa. Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index. Then calculate each entity's average return 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, anddividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 2015 because you do nothave 2014 data.) Round your answers to two decimal places.YearBartman IndustriesReynolds Inc.Winslow 50002020%%2019%%%A2018%%2017%%2016%%%

Average return is calculated as : Mean=Sum of returnnumber of periodsStandard deviation (sample) =…

Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index. Then calculate each entity's average return 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 2015 because you do not have 2014 data.) Round your answers to two decimal places. Year Bartman Industries Reynolds Inc. Winslow 5000 2020 % % 2019 % % % 2018 % % % 2017 % 2016 % % Average % b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the sample standard deviation formula, which corresponds to the STDEV.S function in Excel.) Round your answers to two decimal places. Bartman Industries Reynolds Inc. Winslow 5000 Standard deviation % c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places. Bartman Industries Reynolds Inc. Winslow 5000 Coefficient of variation d. Assume the risk-free rate during this time was 4%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using their average returns. Round your answers to four decimal places. Bartman Industries Reynolds Inc. Winslow 5000 Sharpe ratio

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD