Reference no: EM132066153
Question: Risk and Return
Calculate the following using the data from Yahoo Finance for the company you selected for Question of Assignment .
1. Calculate the daily market return over the last five years from the daily prices, calculate the monthly returns from the daily returns, and calculate the yearly returns from the monthly returns.
2. Calculate the total risk (i.e. yearly standard deviation of the daily returns).
3. Calculate the yearly systematic / market risk using the daily returns of the stock and daily return of the market index.
4. Calculate the unsystematic risk / firm specific risk.
5. Suggest whether this company is a good investment. Answer the following questions while making your suggestion.
a) What is the basis for selection of this stock if you suggest this as a good investment?
b) Would you invest all your money into this stock? If not, why not? How will you address this concern?
|
Why apra think it is important for bank to be unquestionable
: ACST734: Regulation has both costs and benefits. Under normative theories of regulation, regulation should be "in the public interest".
|
|
What is net domestic income at market prices
: a) What is GDP (Expenditure Approach)? b) What is GDP (Income Approach)?
|
|
Calculate the net income before taxes
: Total revenues for the period are $50,000, operating expenses and costs $30,000, The net income before taxes will be what amount
|
|
Compute the overhead rate for each activity
: Possible cost drivers are direct labor hours (2,550), machine hours (12,500), Compute the overhead rate for each activity
|
|
Calculate the unsystematic risk or firm specific risk
: Calculate the yearly systematic / market risk using the daily returns of the stock and daily return of the market index.
|
|
What happened to unemployment between january
: a. Predict what happened to unemployment between January 2015 and August 2016, if the labour force was constant.
|
|
Compute the correct balance in the cash account
: A customer's check for $1,380 was recorded on the books as $1,830, and a check written for $318 was recorded as $381. Compute the correct balance
|
|
Demand for hand sanitizer tripled
: Should Johnson & Johnson increase production of their Purell hand sanitizer? or Should it invest in doubling production capacity?
|
|
Calculate the minimum price per chair
: Calculate the minimum price per chair that the company could charge for this special order if management requires a $510 minimum profit
|