Question
In: Statistics and Probability
The price per share of stock for a sample of 25 companies was recorded at the...
The price per share of stock for a sample of 25 companies was recorded at the beginning of a given year and then again at the end of the 1st quarter of that year. How stocks perform during the 1st quarter is an indicator of what is ahead for the stock market and the economy. Use the sample data given below to answer the following.
| Company | End of 1st Quarter |
Beginning of Year |
|---|---|---|
| Company A | 24.13 | 19.91 |
| Company B | 39.01 | 37.36 |
| Company C | 51.9 | 45.78 |
| Company D | 58.42 | 62.03 |
| Company E | 66.96 | 65.58 |
| Company F | 106.48 | 105.94 |
| Company G | 29.01 | 23.71 |
| Company H | 12.45 | 10.71 |
| Company I | 44.41 | 41.22 |
| Company J | 21.07 | 17.91 |
| Company K | 30.23 | 30.24 |
| Company L | 20.15 | 18.08 |
| Company M | 51.31 | 42.04 |
| Company | End of 1st Quarter |
Beginning of Year |
|---|---|---|
| Company N | 46.98 | 33.25 |
| Company O | 66.21 | 66.71 |
| Company P | 37.23 | 40.12 |
| Company Q | 71.12 | 62.00 |
| Company R | 41.27 | 41.56 |
| Company S | 32.26 | 25.96 |
| Company T | 75.01 | 69.97 |
| Company U | 68.06 | 54.70 |
| Company V | 86.73 | 84.76 |
| Company W | 23.65 | 21.64 |
| Company X | 28.16 | 25.58 |
| Company Y | 108.21 | 106.40 |
(a)
Let
di
denote the change in price per share for company i where
di
= price per share at the end of the 1st quarter of the given year minus price per share at the beginning of that year. Use the sample mean of these values to estimate the dollar amount a share of stock has changed during the 1st quarter. (Round your answer to two decimal places.)
$
(b)
What is the 95% confidence interval (in dollars) estimate of the population mean change in the price per share of stock during the first quarter? (Use end of first quarter − beginning of year. Round your answers to two decimal places.)
$ to $
Interpret this result.
The 95% confidence interval ---Select--- is completely below is completely above contains zero. This shows that the population mean price per share of stock has ---Select--- decreased increased over the three-month period.
Solutions
orchestra answered 2 years agoRelated Solutions
The price per share of stock for a sample of 25 companies was recorded at the...
The price per share of stock for a sample of 25 companies was
recorded at the beginning of 2012 and then again at the end of the
1st quarter of 2012. How stocks perform during the 1st quarter is
an indicator of what is ahead for the stock market and the economy.
The sample data are provided below. Construct a spreadsheet to
answer the following questions.
End of 1st Quarter
Beginning of Year
26.83
18.71
40.41
34.86
54.80
44.18
59.52...
The price per share of stock for a sample of 25 companies was recorded at the...
The price per share of stock for a sample of 25 companies was
recorded at the beginning of 2012 and then again at the end of the
1st quarter of 2012. How stocks perform during the 1st quarter is
an indicator of what is ahead for the stock market and the economy.
The sample data are provided in the Excel Online file below.
Construct a spreadsheet to answer the following questions.
End of 1st Quarter
Beginning of Year
Change in...
the spot price of stock is $25. the dividends of $0.5 per share are expected after...
the spot price of stock is $25. the dividends of $0.5 per share
are expected after 3 months, 6 months, and 9 months. assuming that
interest rates are 8% per annum for all maturities, calculate the
forward price of stock for delivery in 11 months.
Suppose you own stock in a company. The current price per share is $25. Another company...
Suppose you own stock in a company. The current price per share
is $25. Another company has just announced that it wants to buy
your company and will pay $35 per share to acquire all the
outstanding stock. Your company’s management immediately begins
fighting off this hostile bid. Is management acting in the
shareholders’ best interests? Why or why not?
(Cost of equity) MAM just declared a dividend of $3.2 per share of common stock. The current stock price is $25 per share. The dividend is expected to increase at a rate of 8% per year for the future.
(Cost of equity) MAM just declared a dividend of $3.2 per share of common stock. The current stock price is $25 per share. The dividend is expected to increase at a rate of 8% per year for the future. The beta of its common stock is 1.1 and the market risk premium is 9%. The risk-free rate=5%. According to the dividend growth model approach, the cost of the equity capital is _________%.
The current price of Parador Industries stock is $44 per share. Current sales per share are...
The current price of Parador Industries stock is $44 per share.
Current sales per share are $21.35, the sales growth rate is 4
percent, and Parador does not pay a dividend. The expected return
on Parador stock is 13 percent.
a. Calculate the sales per share one year
ahead. (Round your answer to 2 decimal
places.)
b. Calculate the P/S ratio one year ahead.
(Do not round intermediate calculations. Round your answer
to 2 decimal places.)
The price of a share of stock divided by the company's estimated future earnings per share...
The price of a share of stock divided by the company's estimated
future earnings per share is called the P/E ratio. High P/E ratios
usually indicate "growth" stocks, or maybe stocks that are simply
overpriced. Low P/E ratios indicate "value" stocks or bargain
stocks. A random sample of 51 of the largest companies in the
United States gave the following P/E ratios†.
11
35
19
13
15
21
40
18
60
72
9
20
29
53
16
26
21
14...
The price of a share of stock divided by the company's estimated future earnings per share...
The price of a share of stock divided by the company's estimated
future earnings per share is called the P/E ratio. High P/E ratios
usually indicate "growth" stocks, or maybe stocks that are simply
overpriced. Low P/E ratios indicate "value" stocks or bargain
stocks. A random sample of 51 of the largest companies in the
United States gave the following P/E ratios†.
11
35
19
13
15
21
40
18
60
72
9
20
29
53
16
26
21
14...
______ 8. Assume the offer price for an IPO is set at $25 per share and...
______
8. Assume the offer price for an IPO
is set at $25 per share and the shares issued in the IPO is 10
million. The lead underwriter, however, sells 11.5 million shares
to investors at the $25 offer price, planning to use the
overallotment option, if needed, to satisfy its short position.
Assume that the IPO firm’s stock starts trading on the stock
exchange at either $23 per share or $27 per share. In which of
these two possible...
Cisco stock price is $20 per share now. Investor A expects the stock price to go...
Cisco stock price is $20 per share now. Investor A expects the
stock price to go up because of the 5G technology breakthrough.
With $10,000 available, investor A will choose from the following
alternative investment strategies to make profit from the price
change.
1) He will invest all the money buying Cisco stocks at the
current price $20. In one month, if the stock price of Cisco
increases to $25, what is his total dollar amount profit? (4
points)
2)...
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