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The company I have come up with these Forecasts for is RadNet Inc., and I need these questions answered How risky are the assets of
The company I have come up with these Forecasts for is RadNet Inc., and I need these questions answered
- How risky are the assets of the firm? Where is the risk coming from (market, firm, industry, or currency)?
- How risky is the stock of the firm?
- Do the firm's assets and stock have the same risk profile?
- How risky are the bonds issued by the firm (if any)?
- How is the risk of the firm compared to its closest competitor?
- What return would you have earned investing in the firm's stock for the past five years? Would you have under or outperformed the market? How much of the performance can be attributed to management? Justify.
RISK AND PERFORMANCE MEASURES | |||
Intercept (Alpha) = | 0.14% | ||
Slope (Beta)= | 1.558 | Market | |
One Year Total Return | -13.32% | 11.09% | |
Two-Year Total Return | 30.10% | 27.15% | |
Five-Year Total Return | 171.36% | 71.70% | |
VARIANCE STATISTICS | |||
Variance of the stock= | 0.022261522 | ||
Variance of the market = | 0.001891527 | ||
Systematic variance= | 0.004590259 | ||
Unsystematic variance= | 0.017671263 | ||
R squared = | 20.62% | ||
Expected Return | |||
Riskfree Rate = | 0.82% | ||
Historical return premium= | 5.50% | ||
Expected return= | 9.39% | ||
Forecasting Prices | |||
Current price= | $16.77 | ||
Annualized DPS= | $0.00 | ||
Predicted prices: | |||
- One year from now | $18.34 | ||
- Two years from now | $20.07 | ||
- Three years from now | $21.95 | ||
- Four years from now | $24.01 | ||
- Five years from now | $26.27 |
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