Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Finance In Theory And Practice

Authors: Stefano Gatti

3rd Edition

0128114010, 978-0128114018

More Books

Students also viewed these Finance questions