ver the past 5 years, River Valley Industries has reflected a risk-free rate of 3% and the following return on A and B shares: Years Share A Share B   1         17%      21%   2         28%      24%   3        -2.10     28%   4           5%      8%   5          21%    27% Calculate the coefficient of variation of shares A and B. Determine and explain which stock has performed better.

Q: a company has a beta value of 1.3, the risk-free rate of return is 8% and the historical risk…

A: Beta of the Company is 1.3 Risk-free rate is 8% The risk premium is 5% To Find: Expected return

Q: Suppose a stock had an initial price of $102 per share, paid a dividend of $3.30 per share during…

A: Ending price = 80.5Initial Price = 102Dividend = 3.3

Q: A stock has had the following year-end prices and dividends: Year 1 2 3 4 5 6 Price $64.58 71.45…

A: Year Price (a)Dividend (b)Annual return…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.23271.10…

A: Here are the arithmetic and geometric returns for the stock:YearArithmetic Return…

Q: Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for…

A: The correlation coefficient is a statistical measure indicating the strength and direction of a…

Q: You are given the returns for the following three stocks: Year 1 2 3 4 5 Stock A 8.00% 8.00 8.00…

A: Returns in finance are defined as the income earned by investors, firms, and governments…

Q: A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent,…

A: The below expression can be used to calculate geometric average return:

Q: You are evaluating two stocks and trying to decide if they are undervalued or overvalued. You are…

A: Given: Particulars Stock 1 Stock 2 Price(P) 15 30 Dividend(d) 1 2 Dividend growth rate(g)…

Q: The company stock ticker symbol is PTC. Discuss the past performance of the stock (such as…

A: PTC is a technology company that provides software solutions and services for product development…

Q: A stock has had the following year-end prices and dividends: Year 1 Price $64.68 2 3 71.55 77.35…

A: Calculation of arithmetic and geometric mean:Excel working with formula:

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: Step 1: FormulaCurrent Total Market Value of Index StocksDivided by: Base year total market value of…

Q: Use the data below to determine which of the statements is most accurate? As of December 31,…

A: In a market weighted index, the weight of each of the stock will be based on the market…

Q: You are given the following information regarding prices for a sample of stocks. Stock B: Stock A B…

A: Here,

Q: A stock has had returns of 21 percent, 13 percent, 8 percent, -11 percent, -3 percent, and 17…

A: The return on stock refers to the profit that the stock provides to the investor for their…

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: A portfolio's return % serves as a gauge for the overall performance of the portfolio over a certain…

Q: use the end of your stock price data in the pop-up window to answer the following, questions from…

A: The problem case focuses on calculating the annual rate of return for each year for stocks of Hariss…

Q: Last year, your investment in large-company stocks earned an average of 6 percent while T-bills…

A: The correct answer to the question is "Risk premium".According to the Capital Asset Pricing Model…

Q: Using the data in the following table, estimate the average return and volatility for each stock.…

A: Step 1: Calculate the average return for each stock. For the average return, we must add all of the…

Q: 1. A stock has had the following year-end prices and dividends: Year 1 2 3 4 5 6 Price ($) 93.75…

A: Average return:A financial term known as the average return measures the typical profit or loss on…

Q: A stock has had the following year-end prices and dividends: Year Price $65.03 123456 71.90 77.70…

A: Here,

Q: Please explain the price movements of each stock's DIS AND WFC from the past three months shown in…

A: Price Movements and returns:  Stock prices are dynamic and constantly change to reflect the changes…

Q: Integrative-Risk and Valuation Given the following information for the stock of Foster Company,…

A: Risk premium of the stock is the excess return the stock provide above the risk free rate. formula:…

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: Here,Price of KI in beginning is $72Price of PC in beginning is $113Price of KI in ending is…

Q: Arithmetic average return Geometric average return % olo olo %

A: Return 1 = r1 = 39.50%/100 = 0.3950 in decimalReturn 2 = r2 = 23.50%/100 = 0.2350 in decimalReturn 3…

Q: The following shows the expected percentage returns on three stocks over the next six years: Stock…

A: Here,

Q: A stock has had the following year-end prices and dividends:   Year Price Dividend 1 $…

A: Solution Arithmetic Average Return = 9.57% Geometric Average Return = 8.41% Explanation:Step 1:Year…

Q: A stock has had the following year-end prices and dividends: Year 0 1 234 LO 5 Price $ 32.5 34.68…

A: Arithmetic is the simplest form of calculating the average rate of return from the series of…

Q: Consider the following sample of annual holding period returns on Masco (a corporation) and the…

A: The unpredictability or fluctuation of investment results is referred to as risk. Investments with a…

Q: A stock has had the following year-end prices and dividends: Year 1 Price Dividend $ 43.41 2 48.39…

A: Step 1: Calculate the Holding Period Returns (HPR) for Each YearTo find the returns for each year,…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $16.25 1 18.43 $…

A: Geometric return is annualized return found by taking individual return. This return is calculated…

Q: stock has had returns of -7.77 percent, -4.59 percent, 5.87 percent, 9.98 percent, 8.7 percent, and…

A: The below expression can be used to calculate geometric average return:

Q: sidering the purchase of a share. Tne following table shows the possible returns Trom the share over…

A: Introduction Variance: Since it calculates how far a stock deviates from its mean, variance is a…

Q: What are the arithmetic and geometric returns for the stock?

A: Arithmetic and Geometric mean are used to calculate the expected mean of the stock Arithmetic Mean…

Q: A stock has had the following year-end prices and dividends: Price $ 64.63 71.50 77.30 63.57 73.71…

A: Rate of Return = (Ending Price + Dividend - Beginning Price) / Beginning PriceArithmetic Average…

Q: A stock has had returns of 16.72 percent, 12.20 percent, 5.90 percent, 26.86 percent, and −13.49…

A: r1 = 0.1672 r2 = 0.1220 r3 = 0.0590 r4 = 0.2686 r5 = - 0.1349 Number of returns (n) = 5

Q: Silver Industries' Y shares have an expected return of 15%, a beta coefficient of 0.8 and a standard…

A:

Q: Suppose a stock had an initial price of $84 per share, paid a dividend of $1.50 per share during the…

A: Given, The initial price is $84 Dividend paid $1.50 Ending share price is $71.50

Q: Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown…

A: The expected return of a portfolio refers to the weighted average profit of the constituent stocks…

Q: Suppose a stock had an initial price of $93 per share, paid a dividend of $2.40 per share during the…

A: Ratio analysis refers to the comparison of two mathematical expressions taken from the financial…

Q: Directions: Compute the total returns, the average of returns, and the standard deviation of the…

A: Risk-return refers to the fundamental relationship between the potential gains and losses associated…

Q: A stock has had returns of -19.7 percent, 29.7 percent, 32.4 percent, -10.8 percent, 35.5 percent,…

A: r1 = - 0.197 r2 = 0.297 r3 = 0.324 r4 = - 0.108 r5 = 0.355 r6 = 0.277   Number of returns (n) = 6

Q: A stock has had returns of 10 percent, 17 percent, 26 percent, −14 percent, 24 percent, and −9…

A: Arithmetic average return is the simple average return and geometric average return is the annual…

Q: A stock has had the following year-end prices and dividends: Year Price $ 64.98 Dividend - 12345…

A: Arithmetic mean can be referred as the average return that can be expected from the return of the…

Q: A stock has had returns of 39.00 percent, 23.00 percent, 34.00 percent, -11.00 percent, 21.00…

A: The problem requires calculating the annual average rate of return for the given return profile of…