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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
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. Year Stock Price Dividend $1.10 2020 Winslow 5000 Includes Dividends $11,642.34 8,783.33 Stock Price $48.00 51.75 $17.40 Dividend $3.10 3.05 2019 15.05 1.01 2018 16.65 0.95 48.00 2.90 8,682.71 2017 10.85 0.90 57.10 2.65 6,619.59 2016 11.57 0.85 60.75 2.45 5,759.23 2015 7.77 0.80 55.20 2.15 4,783.85 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. X Download spreadsheet Evaluating Risk and Return-2d3da4.xlsx a. 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 % 2019 % 2018 % % 2017 2016 % % Average % % % b. 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 Winslow 5000 Reynolds Inc. % Standard deviation % c. 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 d. Assume the risk-free rate during this time was 2%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using their average returns. Round your answers to four decimal places. Reynolds Inc. Winslow 5000 Bartman Industries Sharpe ratio %6 % % % % % % %
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