Assessment of the relative riskiness of investing

Assignment Help Operation Management
Reference no: EM13956208

The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 905. If the average dividend paid on the stocks in the index is approximately 4.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index?

1. The rate of return earned on the S&P 500 is?

2. What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index?

a) There is not enough information given to answer this question

b) In general, investing in a single stock has the same relative riskiness as investing in the S&P index

c) In general, investing in the S&P index is riskier than investing in a single stock

d) In general, investing in a single stock is riskier that investing in the S&P index

Reference no: EM13956208

Questions Cloud

What is jarreds realized and recognized gain or loss on sale : In 2008 he replaced the entire roof for $12,000 and also paid $2,000 for repairs to the inside of the rental. Thus far, Jared deducted $18,440 for depreciation. What is Jarred's realized and recognized gain or loss on this sale?
What is the market-to-book ratio : Lemon Lymon, Inc., has a current stock price of $80. For the past year the company had net income of $7,400,000, total equity of $32,450,000, and 3.6 million shares of stock outstanding. What is the market-to-book ratio? Please show your work.
What must annual deposit be : Lisa Simpson wants to have $1,700,000 in 60 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 9.75 percent annually. What must Lisa’s annual deposit be?
Find the prob. that they get such a family. : Find the prob. that they get such a family and the boy is the youngest
Assessment of the relative riskiness of investing : The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 905. The rate of return earned on the S&P 500 is? ..
What activities do the u.s. anti-bribery provisions prohibit : Are companies obligated to disclose information concerning potential bribery (like the above fact scenario) in their filings, and if so, when are they required to do so?
What category of ip has paraworld most likely infringed : Assume ParaWorld was eventually ordered to cease and desist due to IP infringement. What category of IP has ParaWorld most likely infringed? Explain the actions that constitute such an infringement.
Derive the two firms best response functions : Derive the two firms' best response functions. Verify that if firm A responds to qb by selling on both markets (i.e. qa>0 and qm>0) then marginal revenues are the same on both markets. Explain the intuition.
How would standards change for the science honors program : In this situation, what is the ?price? that determines how many students will apply to the honors program? Also, assume that the people who run the honors program do not plan to expand or contract it. Depict the demand and supply curves that repre..

Reviews

Write a Review

Operation Management Questions & Answers

  What is the total vehicle life cycle cost of this hybrid

What is the total vehicle life cycle cost of this hybrid.

  Multiple regression analysis

Multiple regression analysis based on the assumptions of linearity and normality.

  Illustrate what is the probability that the overall rate

Illustrate what is the probability that the overall defective rate is still at 1percent if in fact, exactly two of the five are defective in this sample.

  What are critical trade-off involve in logistic postponement

What are the critical trade-offs involved in logistics postponement? What are the critical linkages between the logistics management system and other functions such as production and purchasing?

  What strategies are recommended for a firm

Using a Grand Strategy Matrix approach, what strategies are recommended for a firm that is a weak competitor in a slow-growing market? Elaborate on what these strategies could mean for a college or university.

  Develop a compelling presentation to the operations

Develop a compelling presentation to the operations manager that will explore the benefits of implementing supply chain management on his floor.

  What are of tools used in organizational memory management

What are some of the tools used in organizational memory management?

  Marketing potential of social networking

Strategic management involves setting objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies, and making sure that the strategies are rolled out across the organization. While Lady Gaga’s busines..

  Illustrate what was poka-yoke shingo created

Existing method involved assemblers taking individual springs from a box containing several hundred also then placing two of m behind an ON button also two more behind an OFF button. Illustrate what was poka-yoke Shingo created

  How does integrated strategic change differ from traditional

How does integrated strategic change differ from traditional strategic planning and traditional planned organization change?

  Multiple choice questions - organizational behavior

As people become more powerful they tend to become less goal-oriented, less motivated, and more focused on gaining additional power.

  Describe how to apply multiproduct break-even analysis

describe how to apply multiproduct break-even analysis in manufacturing and/or service organizations. For each site you include in the list, present the site's URL and name

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd