User Account

All Pages

What would happen to the average return on the portfolio

Assignment Help Managerial Accounting
Reference no: EM132502206

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:

Question 1: What was the average return for the stock over the period of 1990 through 2010?

Question 2: What was the standard deviation for the stock over this period?

Question 3: 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?

Question 4: Should Allied invest in the stock? Justify your response.

Reference no: EM132502206

Questions Cloud

How global population growth has caused the problem : Imagine you have been hired as a consultant for the United Nations. You have been asked to write an analysis of how global population growth has caused.
BBS104 Introduction to Biosecurity Assignment : BBS104 Introduction to Biosecurity Assignment Help and Solution - Box Hill Institute, Australia - Assessment Writing Service
What is the beginning work in process? inventory : What is the beginning work in process? inventory? The following is selected financial data from Turtle Bay Manufacturing for the most recent year
Identify and calculate as many different variances as can : Identify and calculate as many different variances as you can for 2016. Milberg Co. uses absorption costing and standard costing to improve cost control.
What would happen to the average return on the portfolio : 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
Find an investment project is considered acceptable : An investment project is considered acceptable if The Modified Payback Period is less than the estimated useful life and is less than company payback hurdle.
Prepare cash budget for april and may : Prepare cash budget for April, May, and June as well as in total for the quarter. Dividends of $25,000 will be declared and paid in April.
How attracted you think future salespeople may be to plan : Based upon the type of plan you have created, indicate how attracted you think future salespeople may be to this plan. Use at least five (5) quality academic.
What would be the best remedy to overcome the fears : Research suggests that being a good public speaker can help individuals grow their business, advance their careers, and form strong collaborations.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd