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In: Finance
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the...
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -10%,15%, 25%; MC: -19%,36%,-47%. Calculate the sample standard deviation of return for MC. (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =STDEV function in Excel.)
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -34%,13%,21%; MC: 10%, 6%, 32%. Calculate the sample variance of return for FC. (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =VAR function in Excel.)
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -38%,39%, -22%; MC: 10%, 6%, 32%. Calculate the sample standard deviation of return for FC. (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =STDEV function in Excel.)
Solutions
jeff jeffy answered 2 months agoRelated Solutions
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the...
Florida Company (FC) and Minnesota Company (MC) are both service
companies. Their historical return for the past three years are:
FC: 22%,-36%, -48%; MC: 14%, -20%, -22%. Calculate the sample
covariance between the returns of FC and MC.(For these problems
don't enter the % into your formula, e.g. treat "10%" as "10", not
as "0.10". If you use the =COVAR function in Excel you must
multiply the result by {3/2} to adjust for the degrees of
freedom. If you use the...
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the...
Florida Company (FC) and Minnesota Company (MC) are both service
companies. Their stock returns for the past three years were as
follows: FC: −5 percent, 15 percent, 20 percent; MC: 8 percent, 8
percent, 20 percent. What is the standard deviation of a portfolio
with 50 % of the funds invested in FC and 50 % in Mc ?(Ignore the
correction for the loss of a degree of freedom set out in the
text)
Flordia Company (FC) and Minnesota Company (MC) are both Multinational Corporations. Their stock returns for the...
Flordia Company (FC) and Minnesota Company (MC) are
both Multinational Corporations. Their stock returns for the past
three years were as follows: FC: -7 percent, 16 percent, 24
percent; MC: 10 percent, 12 percent, 26 percent. You are required
to calculation the followings: (Please show correct formulas and
detailed workouts)
c. The correlation coefficient between the returns of FC
and MC.
d. If FC and MC are combined into a portfolio with 50
percent of the funds invested in each...
Risk and Return Example There is a Minnesota Pharmaceuticals company that sent a product to be...
Risk and Return Example
There is a Minnesota Pharmaceuticals company that sent a product
to be evaluated by the FDA. There are 5 outcomes; that it is
approved, that it receives contingent approval, that it is sent
back for more analysis of the data, that it is sent back to gather
more data and do more analysis, or that it is rejected
The company is part of the S&P 1500. Thus S&P 1500 will
move some based on these outcomes....
Company A and B are both service companies. For the past three years their stock returns...
Company A and B are both service companies. For the past three
years their stock returns were:
A: -5%, 15%, 20%
B: 8%, 8%, 20%
If A and B are combined into a portfolio with 50% of the funds
invested in each stock, calculate the expected return on the
portfolio.
Table below shows the historical returns for Companies A, B and C Year Company A Company...
Table below shows the historical returns for Companies A, B and
C
Year
Company A
Company B
Company C
1
30%
26%
47%
2
7%
15%
-54%
3
18%
-14%
15%
4
-22%
-15%
7%
5
-14%
2%
-28%
6
10%
-18%
40%
7
26%
42%
17%
8
-10%
30%
-23%
9
-3%
-32%
-4%
10
38%
28%
75%
11
27.0%
23.4%
42.3%
12
6.3%
13.5%
-48.6%
13
16.2%
-12.6%
13.5%
14
-19.8%
-13.5%
6.3%
15
-12.6%
1.8%
-25.2%
16...
Assume that annual returns on large-company stocks are normally distributed with an average historical return of...
Assume that annual returns on large-company stocks are normally
distributed with an average historical return of 12.3% and a
standard deviation of 20.0%. What is the probability that annual
return on large-company stocks is greater than 5% and Less than
30%?
Internal Rate of Return Method for a Service Company The Riverton Company, announced a $608,580 million...
Internal Rate of Return Method for a Service Company
The Riverton Company, announced a $608,580 million expansion of
lodging properties, ski lifts, and terrain in Park City, Utah.
Assume that this investment is estimated to produce $98,000 million
in equal annual cash flows for each of the first eight years of the
project life.
Present Value of an Annuity of $1 at
Compound Interest
Year
6%
10%
12%
15%
20%
1
0.943
0.909
0.893
0.870
0.833
2
1.833
1.736
1.690...
Internal Rate of Return Method for a Service Company The Riverton Company, a ski resort, recently...
Internal Rate of
Return Method for a Service Company
The Riverton Company,
a ski resort, recently announced a $368,830 expansion to lodging
properties, lifts, and terrain. Assume that this investment is
estimated to produce $110,000 in equal annual cash flows for each
of the first five years of the project life.
Present Value of an Annuity of $1 at
Compound Interest
Year
6%
10%
12%
15%
20%
1
0.943
0.909
0.893
0.870
0.833
2
1.833
1.736
1.690
1.626
1.528
3...
Company 1 and Company 2 are online retailers. Both companies are basically identical and follow the...
Company 1 and Company 2 are online retailers. Both companies
are basically identical and follow the same accounting practices
except that Company A uses LIFO and Company B uses FIFO to value
their inventory. Because of rising inventory costs, both companies
need additional capital to manage their operations.
For your main discussion post, reflect on these questions: If
Company A and Company B apply for a loan at their local bank and
the bank bases its decision on net income,...
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