Solution-Find volatility of the returns and growth rate

Find volatility of the returns and growth rate

Reference no: EM133069721

The table below contains the Return on Assets (ROA) and the growth in sales for two publicly traded hospitality firms - one restaurant and the other a hotel. Compute the mean and standard deviation of the ROA and sales growth. Based on the volatility of the returns and growth rate, identify which of the firms is the hotel and which one is the restaurant. Justify your choice.

*Date*	Firm A		Firm B
	ROA	Sales Growth		ROA	Sales Growth
*12/31/2019*	5%	1%		13%	0%
*12/31/2018*	8%	-9%		18%	-8%
*12/31/2017*	6%	34%		15%	-7%
*12/31/2016*	3%	18%		15%	-3%
*12/31/2015*	14%	5%		12%	-7%
*12/31/2014*	11%	8%		14%	-2%
*12/31/2013*	9%	8%		15%	2%
*12/28/2012*	9%	-4%		15%	2%
*12/30/2011*	3%	5%		17%	12%
*12/31/2010*	5%	7%		15%	6%

Reference no: EM133069721

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Find volatility of the returns and growth rate

Reference no: EM133069721

Reference no: EM133069721

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