Which stock would you prefer for your portfolio

Assignment Help Financial Management

Reference no: EM131058454

A U.S. investor is considering two stocks and wishes to select one of them for his portfolio. Data on these stocks follow. Assume that the U.S. risk-free rate is 6 percent.

Stock Country Average Return Past 5 Years Standard Deviation

A United States 12% 30%

B Poland, listed as ADR 14% 50%

A. Calculate the Sharpe index for each stock.

B. Which stock would you prefer for your portfolio? Explain

C. Would you five special considerations to B because it is a foreign stock? Explain

Reference no: EM131058454

Questions Cloud

Describe a leadership style used in the case study : Evaluate Leadership Theory- Describe a leadership style used in the case study and why there was a shift in leadership style throughout the case study. Explain the characteristics and decisions of management in the case study that help explain the sh..

Bottling companies and sells to the smaller retailers : For the smaller retailers that request smaller quantities of our products they can allow their wholesalers to buy in bulk from the bottling companies and sells to the smaller retailers.

Determine the stock current price : A stock is expected to pay a year-end dividend, D1, of $0.75 per share. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. Show your work in all calculations. Can the Gordon model be used in this case to det..

Question regarding the concepts of population and race : Write an essay that summarizes the difference between the concepts of population and race and identifies the strengths and weaknesses of each. Be sure to discuss these concepts in terms of way they are defined and explained in the on-line notes. D..

Which stock would you prefer for your portfolio : A U.S. investor is considering two stocks and wishes to select one of them for his portfolio. Data on these stocks follow. Assume that the U.S. risk-free rate is 6 percent. Calculate the Sharpe index for each stock. Which stock would you prefer for y..

Your personal and professional skills : Prepare a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of your personal and professional skills relating to the real estate industry. Discuss how you can leverage your strengths to create a personal competitive advantage in a ..

Identify major process issue : Identify a major process issue (bottleneck) that is either contributing to or preventing the competitive advantage of Apple Inc. (brand appeal/customer loyalty/premium pricing) from being fully achieved?

Identify the relevant segments and trends in the demographic : macro-environment factors: identify the relevant segments and trends in the demographic, economic, regulatory, socio-cultural and technological environment;

Lenders probably have interest-price-earning and debt-equity : Lenders probably have the most interest in which one of the following sets of ratios? Return on assets and profit margin. Long-term debt and times interest earned. Price-earnings and debt-equity. Market-to-book and times interest earned.

User Account

All Pages