1) Consider buying Coca-Cola stock. Calculate the fundamental value of Coca-Cola using the following information.

Quarterly dividend of $0.33/share (assume a dividend was just paid) Coca-Cola plans to keep the dividend fixed for the next 4quarters Projected price in1 2-months = $48 Quarterly discount rate of 2%

2)

a) Find the arithmetic average return for the following data of SP 500.

b) Find the geometric average return for the above data of SP 500.

c) Given the annual average return of a portfolio is 8.3% and the standard deviation is 17.57%. With a 3% risk-free rate, calculate the Sharpe ratio of this portfolio.

Data for this Date Range Aug. 31, 2016 July 31, 2016 June 30, 2016 May 31, 2016 April 30, 2016 March 31, 2016 Feb. 29, 2016 Jan. 31, 2016 Source: Ycharts.com -0.12% 3.56% 0.09% 1.53% 0.27% 6.60% -0.41% -5.07% Data for this Date Range Aug. 31, 2016 July 31, 2016 June 30, 2016 May 31, 2016 April 30, 2016 March 31, 2016 Feb. 29, 2016 Jan. 31, 2016 Source: Ycharts.com -0.12% 3.56% 0.09% 1.53% 0.27% 6.60% -0.41% -5.07%