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Bartman Industries and Revnolds in stock prices and dividends, long with the Wind 5000 index shown here for the period 2015-2021. The Winslow 100 data

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Bartman Industries and Revnolds in stock prices and dividends, long with the Wind 5000 index shown here for the period 2015-2021. The Winslow 100 data we wted to include vidende Bartman Industries Reynolds Inc winstow 5000 Year Stock Price Dividend Stock Price Dividend Includes Dividends 2070 $16.95 $1.00 549.50 32.00 112,0875 2019 1465 1.0 52.65 2.73 0.160.84 2016 16.25 0.95 40.50 2.00 9.048 50 2017 10.00 0.00 58.40 2.40 6.737.94 3016 1132 0.35 61.85 2.25 5,04330 2015 7.52 0.30 56.60 3.10 4,053.25 Estimate Batman's and Raide's bets by using regression of the returns into your weste decides Batman's beta Merynos betal Are these buts consistent with your graph Thea butas stent with the scatter Asunt that the free rate on long-term reary bonds is 5 sume that the won the Window 500 m of the muniti expected return on the market. Use the equation to calculate the two count Hartman's roured Reynolds' required return h. If you formed a portfolio that consisted of 50 lartman and so what would the portare you the better den anden red return to two decimales Portfolio's beta Portfolio's required return 1. Suppose an investor wants to include barman Industries's stock in his portfolio Stods and are come in the portfolio and the beare, 0.000 1.227. et. Cursusse wat required return it is consists of Batan, 2018 Stock A 40% af Stock 15 of Stock C. Round your answer to two decina place Bartman Industries's and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends. Bartman Industries Reynolds Inc. Winslow 5000 Includes Dividends Year Dividend Stock Price Dividend 2020 $1.08 $49.50 $2.80 $12,067.51 2019 1.01 52.65 2.75 9,160.64 2018 0.95 49.50 2.60 9,048.59 2017 0.90 58.40 2.40 6,737.94 2016 0.85 61.85 2.25 5,843.30 2015 0.80 56.60 2.10 4,853.75 Stock Price $16.95 14.65 16.25 10.60 11.37 7.52 f. Estimate Bartman's and Reynolds's betas by running regressions of their returns against the index's returns. Round. your answers to four decimal places. Bartman's beta: Reynolds's beta: Are these betas consistent with your graph? These betas consistent with the scatter diagrams. g. Assume that the risk-free rate on long-term Treasury bonds is 5.5%. Assume also that the average annual return on the Winslow 5000 is not a good estimate of the market's required return-it is too high. So use 10% as the expected return on the market. Use the SML equation to calculate the two companies' required returns. Round your answers to two decimal places. A Bartman's required return: % % Reynolds's required return: h. If you formed a portfolio that consisted of 50% Bartman and 50% Reynolds, what would the portfolio's beta and required return be? Round your answer for the portfolio's beta to four decimal places and for the portfolio's required return to two decimal places. Portfolio's beta: Portfolio's required return: % 1. Suppose an investor wants to include Bartman Industries's stock in his portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.785, 0.906, and 1.227, respectively. Calculate the new portfolio's required return if it consists of 25% of Bartman, 20% of Stock A, 40% of Stock B, and 15% of Stock C. Round your answer to two decimal places. % Bartman Industries and Revnolds in stock prices and dividends, long with the Wind 5000 index shown here for the period 2015-2021. The Winslow 100 data we wted to include vidende Bartman Industries Reynolds Inc winstow 5000 Year Stock Price Dividend Stock Price Dividend Includes Dividends 2070 $16.95 $1.00 549.50 32.00 112,0875 2019 1465 1.0 52.65 2.73 0.160.84 2016 16.25 0.95 40.50 2.00 9.048 50 2017 10.00 0.00 58.40 2.40 6.737.94 3016 1132 0.35 61.85 2.25 5,04330 2015 7.52 0.30 56.60 3.10 4,053.25 Estimate Batman's and Raide's bets by using regression of the returns into your weste decides Batman's beta Merynos betal Are these buts consistent with your graph Thea butas stent with the scatter Asunt that the free rate on long-term reary bonds is 5 sume that the won the Window 500 m of the muniti expected return on the market. Use the equation to calculate the two count Hartman's roured Reynolds' required return h. If you formed a portfolio that consisted of 50 lartman and so what would the portare you the better den anden red return to two decimales Portfolio's beta Portfolio's required return 1. Suppose an investor wants to include barman Industries's stock in his portfolio Stods and are come in the portfolio and the beare, 0.000 1.227. et. Cursusse wat required return it is consists of Batan, 2018 Stock A 40% af Stock 15 of Stock C. Round your answer to two decina place Bartman Industries's and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends. Bartman Industries Reynolds Inc. Winslow 5000 Includes Dividends Year Dividend Stock Price Dividend 2020 $1.08 $49.50 $2.80 $12,067.51 2019 1.01 52.65 2.75 9,160.64 2018 0.95 49.50 2.60 9,048.59 2017 0.90 58.40 2.40 6,737.94 2016 0.85 61.85 2.25 5,843.30 2015 0.80 56.60 2.10 4,853.75 Stock Price $16.95 14.65 16.25 10.60 11.37 7.52 f. Estimate Bartman's and Reynolds's betas by running regressions of their returns against the index's returns. Round. your answers to four decimal places. Bartman's beta: Reynolds's beta: Are these betas consistent with your graph? These betas consistent with the scatter diagrams. g. Assume that the risk-free rate on long-term Treasury bonds is 5.5%. Assume also that the average annual return on the Winslow 5000 is not a good estimate of the market's required return-it is too high. So use 10% as the expected return on the market. Use the SML equation to calculate the two companies' required returns. Round your answers to two decimal places. A Bartman's required return: % % Reynolds's required return: h. If you formed a portfolio that consisted of 50% Bartman and 50% Reynolds, what would the portfolio's beta and required return be? Round your answer for the portfolio's beta to four decimal places and for the portfolio's required return to two decimal places. Portfolio's beta: Portfolio's required return: % 1. Suppose an investor wants to include Bartman Industries's stock in his portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.785, 0.906, and 1.227, respectively. Calculate the new portfolio's required return if it consists of 25% of Bartman, 20% of Stock A, 40% of Stock B, and 15% of Stock C. Round your answer to two decimal places. %

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