Question
Bartman Industries and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 20152020. The Winslow 5000
Bartman Industries and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 20152020. The Winslow 5000 data are adjusted to include dividends.
Bartman Industries | Reynolds Inc. | Winslow 5000 | ||||||||||||
Year | Stock Price | Dividend | Stock Price | Dividend | Includes Dividends | |||||||||
2020 | $17.20 | $1.15 | $47.00 | $2.90 | $11,227.31 | |||||||||
2019 | 14.55 | 1.06 | 50.15 | 2.85 | 8,529.78 | |||||||||
2018 | 16.35 | 1.00 | 47.00 | 2.75 | 8,423.54 | |||||||||
2017 | 10.55 | 0.95 | 54.10 | 2.45 | 6,310.29 | |||||||||
2016 | 11.22 | 0.90 | 57.25 | 2.30 | 5,441.46 | |||||||||
2015 | 7.47 | 0.85 | 52.80 | 2.00 | 4,560.58 |
Do not round intermediate calculations. Round your answers to two decimal places.
1. Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index. Then calculate each entity's average return over the 5-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. Also, you cannot calculate the rate of return for 2015 because you do not have 2014 data.) Round your answers to two decimal places.
Year | Bartman Industries | Reynolds Inc. | Winslow 5000 | ||
2020 | fill in the blank 2 % | fill in the blank 3 % | fill in the blank 4 % | ||
2019 | fill in the blank 5 % | fill in the blank 6 % | fill in the blank 7 % | ||
2018 | fill in the blank 8 % | fill in the blank 9 % | fill in the blank 10 % | ||
2017 | fill in the blank 11 % | fill in the blank 12 % | fill in the blank 13 % | ||
2016 | fill in the blank 14 % | fill in the blank 15 % | fill in the blank 16 % | ||
Average | fill in the blank 17 % | fill in the blank 18 % | fill in the blank 19 % |
2. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the sample standard deviation formula, which corresponds to the STDEV.S function in Excel.) Round your answers to two decimal places.
Bartman Industries | Reynolds Inc. | Winslow 5000 | |||
Standard deviation | fill in the blank 20 % | fill in the blank 21 % | fill in the blank 22 % |
3. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places.
Bartman Industries | Reynolds Inc. | Winslow 5000 | |||
Coefficient of variation | fill in the blank 23 | fill in the blank 24 | fill in the blank 25 |
4. Assume the risk-free rate during this time was 3%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using their average returns. Round your answers to four decimal places.
Bartman Industries | Reynolds Inc. | Winslow 5000 | |||
Sharpe ratio | fill in the blank 26 | fill in the blank 27 | fill in the blank 28 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started