1in late 2010 you purchased the common stock of a company

Assignment Help Finance Basics

Reference no: EM13363836

1. In late 2010, you purchased the common stock of a company that has reported earnings increases in nearly every quarter since your purchase. The price of the stock increased from $12 a share at the time of the purchase to a current level of $45.Notwith standing the success of the company, competitors are gaining much strengths Further, your analysis indicates that the stock may be over-priced based on your projection of future earnings growth. Your analysis however was the same one years ago and the earnings have continued to increase. Actions that you might take range from an outright sale of the stock (and the payment of capital gains tax)to doing nothing and continuing to hold the shares. You reflect on these choices as well as others actions that could be taken. Describe the various that you might take and their implications.

2.Which of the following securities is likely to be the most liquid according to this data? Explain?

Stock BID AS
R $39.43 $39.55
S 13.67 13.77
T 116.02 116.25

3.From the information below, compute the average annual return, variance, standard deviation, and coefficient of variation for each.
Asset Annual Returns
A 5%,10%15%,4%
B -6%, 20%,2%,-5%,10%
C 12%, 15%, 17%
D 10%- 10%, 20%-15%, 8%, -7%

Based on the answer from question three, which asset appears riskiest base on standard deviation? Based on coefficient of variation.

Reference no: EM13363836

Questions Cloud

Manipulating capm use the basic equation for the capital : manipulating capm use the basic equation for the capital asset pricing model capm to work each of the following

Tina purchased a personal umbrella policy with a 1 million : tina purchased a personal umbrella policy with a 1 million limit and a 1000 self-insured retention. her insurer

We will evaluate the expect value of its stock using the : we will evaluate the expect value of its stock using the constant growth model page 114 po d1r - gto do that we will

On 30 january 2002 you bought one share of abc for 80 on 30 : on 30 january 2002 you bought one share of abc for 80. on 30 january 2003 the stock split 2 for 1. on 31st july 2003

1in late 2010 you purchased the common stock of a company : 1.in late 2010 you purchased the common stock of a company that has reported earnings increases in nearly every quarter

Prepare a model to calculate and amortize a structured loan : prepare a model to calculate and amortize a structured loan at a rate of 10 per cent. the cash flow issix rentals of

The standard deviation of investment as return is 10 while : the standard deviation of investment as return is 10 while the standard deviation of investment b is 5. based solely on

You have observed the following returns over time2006- : you have observed the following returns over time2006- stock x 14 stock y 13 market 12 2007- stock x 19 stock y 7

You are the instructor of a one-day tax seminar to inform : you are the instructor of a one-day tax seminar to inform international students studying business in the united states

User Account

All Pages