What stock would you recommend to the client

Reference no: EM132448291

Question 1

You just agreed to take a position of Economic Advisor for InoSmart Inc. The General Manager of the company asked you to describe the nature of salaries paid by the company to its employees last year. The Chief Accountant of the company delivers to you the aggregate monthly salaries data as follows:

Months
Aggregate Salaries
January
743430
February
705320
March
67950
April
780240
May
801970
June
69440
July
816550
August
734380
September
791110
October
753370
November
717640
December
805500

Summarize the data and Provide statistical conclusion based on your statistical output. (Show your statistical procedures that led you to the conclusion.)
Provide your results to the General Manager (in one or two sentences).

Question 2

As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B. The table below shows information about the performance of stocks A and B last year.

(Average) Return

Standard Deviation

Stock A

15%

8.3%

Stock B

15%

2.1%

What factors would you consider as a financial advisor in making decisions about the data above?
Based on these factors, what stock would you recommend to the client?
What reasons will you convey to your client to justify your decision in recommending this stock?
How will this recommendation impact the client?

Reference no: EM132448291

Questions Cloud

Why is it important to set both strategic and financial goal : Should Research in Motion use single product or multi-product break-even analysis? Explain.Why is it important to set both strategic and financial goals?

Describes the role of ethics in a business environment : describes the role of ethics in a business environment?Which of the following best:-guiding the conduct by which companies and their agents abide by the law

How has climate change impacted business : What changes will business need to make in order to reduce climate change-causing warming and how will it impact bottom line performance?

Why do think use of zero-base budgeting remains uncommon : What are some criteria you would use to choose between a fixed and a flexible budget? Why do think use of zero-base budgeting remains uncommon

What stock would you recommend to the client : What factors would you consider as a financial advisor in making decisions about the data above?what stock would you recommend to the client?

Discuss effect of emerging trend on the marketing challenge : A description of the challenge or problem (e.g., Why is it a problem? How long has it been going on? What may have caused the problem?)

Explain what Einstein meant : Develop three strategies to promote productive, innovative practices. How would such strategies cater to innovative engagement and the development of new ideas?

Explain who can bigdeal engage to produce : Who can Bigdeal engage to produce report resulting from this operational audit?Are there any particular advantages or disadvantages in choosing from among them

Correlation between attendance and team batting average : Determine the correlation between attendance and team batting average and be-tween attendance and team ERA.Which is stronger?

User Account

All Pages