You are given the following information about two computer software firms and the S&P Industrials: a. Compute

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You are given the following information about two computer software firms and the S&P Industrials:

a. Compute the growth duration of each company stock relative to the S&P Industrials.
b. Compute the growth duration of Company A relative to Company B.
c. Given these growth durations, what determines your investmentdecision?

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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Question Posted: Dec 17, 2014 10:41 AM

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You are given the following information about two computer software firms and the S&P Industrials: a. Compute

Question:

Com payA Company BP Industrials P/E ratio Expected annual growth rate Dividend yield 18.00 0.07 0.02 30.00 0.18 0.00 27.00 0.15 0.01

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a b c After computing the implied growth durations t...View the full answer

Investment Analysis and Portfolio Management

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