Ch 6 HW - Chapter 6 Ch 06 P14 Build a Model a Use the data...

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4/5/2011 Chapter 6. Ch 06 P14 Build a Model Data as given in the problem are shown below: Bartman Industries Reynolds Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Divs. 2010 $17.250 $1.150 $48.750 $3.000 11,663.98 2009 14.750 1.060 52.300 2.900 8,785.70 2008 16.500 1.000 48.750 2.750 8,679.98 2007 10.750 0.950 57.250 2.500 6,434.03 2006 11.375 0.900 60.000 2.250 5,602.28 2005 7.625 0.850 55.750 2.000 4,705.97 We now calculate the rates of return for the two companies and the index: Bartman Reynolds Index 2010 24.7% -1.1% 32.8% 2009 -4.2% 13.2% 1.2% 2008 62.8% -10.0% 34.9% 2007 2.9% -0.4% 14.8% 2006 61.0% 11.7% 19.0% Average 29.4% 2.7% 20.6% Use the function wizard to calculate the standard deviations. Bartman Reynolds Index Standard deviation of returns 31.5% 9.7% 13.8% c. Now calculate the coefficients of variation Bartman, Reynolds, and the Market Index. Bartman Reynolds Index a. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in the index.
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This note was uploaded on 05/07/2011 for the course FIN 6121 taught by Professor Smith during the Spring '11 term at Northwest Nazarene.

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Ch 6 HW - Chapter 6 Ch 06 P14 Build a Model a Use the data...

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