Problem regarding the tech stocks

Assignment Help Accounting Basics
Reference no: EM131009266

Tech Stocks

These data give the monthly returns on stocks in three technology companies: Dell, IBM, and Microsoft. For each month from January 1990 through the end of 2005 (192 months), the data give the return earned by owning a share of stock in each company. The return is the percentage change in the price, divided by 100.

(a) Describe and contrast histograms of the three companies. Be sure to use a common scale for the data axes of the histograms to make the comparison easier and more reliable.

(b) Find the mean, SD, and coefficient of variation for each set of returns. Are means and SDs useful summaries of variables such as these?

(c) What does comparison of the coefficients of variation tell you about these three stocks?

(d) Investors prefer stocks that grow steadily. In that case, what values are ideal for the mean and SD of the returns? For the coefficient of variation?

(e) It is common to find that stocks that have a high average return also tend to be more volatile, with larger swings in price. Is that true for these three stocks?

Reference no: EM131009266

Questions Cloud

What is the marginal average cost function : Find the average cost function C associated with the following total cost function C. a) C(x) = 0.000008x3 - 0.1x2 + 110x + 59000. What is the marginal average cost function C'?
How are inequalities (math problems) applied in real life : How are inequalities (math problems) applied in real life? What are some examples?
Would this be convincing evidence : A certain large shipment comes with a guarantee that it contains no more than 15% defective items. If the proportion of defective items in the shipment is greater than 15%, the shipment may be returned. You draw a random sample of 10 items. Let X ..
Using the effective interest rate method to amortize bond : Using the effective interest rate method to amortize bond discount will Cause the carrying value of the bond to decrease as it approaches the maturity date.
Problem regarding the tech stocks : These data give the monthly returns on stocks in three technology companies: Dell, IBM, and Microsoft. For each month from January 1990 through the end of 2005 (192 months), the data give the return earned by owning a share of stock in each compan..
A hand of 5 cards is dealt from a standard deck of cards : A hand  of 5 cards is dealt from a standard deck of cards. The number of ways that the hand could be made up of 2 kings, 2 queens, and 1 ace is?
The record height of a man to date is 8 feet : The record height of a man to date is 8 feet 11 inches (107 inches). If all men had identical body types, their weights would wary directly as the cube of their heights. Assume that all men do have identical body types. If a man who is 5 feet 10 inch..
Total revenue per employee : Using the data from Exercise 57, consider the total revenue per employee. Revenue is in millions of dollars, and the count of employees is given in the data table.
Problem regarding the information industry : This data table includes several characteristics of 428 companies classified as being in the information industry in 2010. One column gives the total revenue of the company, in millions of dollars.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Penguin productions is evaluating a film project the

penguin productions is evaluating a film project the president of penguin estimates that the film will cost 20000000 to

  Internal controls over timekeeping and payroll preparation

For example, adequate control over the time on employees' time cards includes the use of a time clock or other method of making certain that employees are paid for the number of hours they worked. Discuss other key internal controls over the timek..

  Suppose that the town elects the first option and issues 10

accounting practices for interest expenditures may neither reflect actual economic cost nor mirror those for interest

  Market rate of return for type of security

If you are planning on buying 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 9 percent at the time of your purchase?

  Magnitude of operating leverage for donuts unlimited

At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 1.5. If sales increase by 20%, profits (net income) will increase by:

  Ljb company a local distributor has asked your accounting

ljb company a local distributor has asked your accounting firm to evaluate their system of internal controls because

  Problem related to interest expense

Jane's Donut Co. borrowed $200,000 on January 1, 2009, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2011. In connection with this note, what amount should Jane's report as interest expen..

  Company code of conduct-employee behavior

Discuss whether or not these additional disclosures will both have a positive impact on public confidence and influence investors' behavior. Support your position.

  Overhaul trucks at a significant cost

The company completely overhauled 10 of its trucks at a significant cost. The overhaul should extend the life of the trucks by at least 3 years. Because the company performs similar overhauls each year, the cost has been properly charged to repair..

  On january 2 2013 benson hospital purchased a 97700 special

on january 2 2013 benson hospital purchased a 97700 special radiology scanner from picard inc. the scanner had a useful

  Jwc only wants to break even on this service total cost of

profit charges and break-even without and with overhead. a number of years ago at the request of its employees jack

  Stockholders equity of camp bell soup

Determine the stockholders' equity of Camp bell soup as of July 31, 2005 If assets increased by $1,094and liabilities increased by $596, what was the increase of decrease in stockholders' equity for the year ending July 30,2006?

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