What was the average return for the stock

Assignment Help Business Management

Reference no: EM132499711 , Length: 4 pages

The Allied Group has acquired Kramer Industries and is now considering additional investments. They have determined that there is a firm that is a good fit for their portfolio, the Kramer firm of Montana.

The firm was established in 1990 and has the following historical returns: Kramer Industries Year Earnings 1990 (8% Loss) 1995 23% 2000 26% 2005 31% 2010 18%

Address all of the following questions:

What was the average return for the stock over the period of 1990 through 2010? What was the standard deviation for the stock over this period?

Assume that you currently have a portfolio that returns 19.5%. If you add this stock to the current portfolio, what would happen to the average return on the portfolio? Should Allied invest in the stock?

Justify your response. Submission Details: Submit your 3 to 4 page paper in a Microsoft Word document, using APA style.

Reference no: EM132499711

Questions Cloud

What is the current value of this european put option : A stock is currently at $50. Over each of the next two 6-month periods, the stock may move up to a factor 1.2 or down by a factor of 0.8 in each period.

Draw the timeline that illustrates the timing of all events : Draw the timeline that illustrates the timing of all the events of the situation described above. How much will Bob and Carol need to have in the bank

What the net present value tends to be : What The net present value tends to be? Find Which of the following is not one of the negative issues of IRR per class discussion?

What is the no-arbitrage 6-year forward rate : Suppose you observe a spot exchange rate of $2.00/£. If interest rates are 5 percent APR in the U.S. and 2 percent APR in the U.K.

What was the average return for the stock : What was the average return for the stock over the period of 1990 through 2010? What was the standard deviation for the stock over this period?

What is the break-even stock price : Suppose a stock is currently selling at $42, and there are two call options available on this stock with the following characteristics.

Determine if running shoe inc generated any cash : Running Shoe, Inc. shows a net profit of $43,526. Which financial statement would be used to determine if Running Shoe, Inc. generated any cash

Solution to complex business scenarios : Create data-driven/fact-based solutions to complex business scenarios and Implement contemporary data analysis tools to analyse business performance

What is transfer pricing : What is transfer pricing? Consider the case of a firm that assembles wagons and purchases wagon wheels and axles from one of its subsidiaries

User Account

All Pages