Question
In: Finance
The following stock price information is presented for Facebook, Inc., and Netflix, Inc. Facebook (USD) Netflix...
The following stock price information is presented for Facebook, Inc., and Netflix, Inc.
|
(USD) |
Netflix (USD) |
|
|
2013 |
26 |
27 |
|
2014 |
60 |
50 |
|
2015 |
82 |
59 |
|
2016 |
114 |
102 |
|
2017 |
142 |
148 |
|
2018 |
160 |
295 |
|
2019 |
167 |
347 |
Required:
- Determine the Arithmetic Average Return for each Stock.
- Determine the Geometric Average Return for each Stock.
- Determine the Standard Deviation for each Stock.
- If you have invested $10,000 in each stock in 2013, what is your total wealth in 2019?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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Following is financial information for NetFlix, Inc., for the
year ended December 31, 2016 (in thousands). Use the parsimonious
method of forecasting to project net operating
profit after tax (NOPAT) and net operating assets (NOA) for 2017
through 2020, inclusive.
Sales
$ 8,830,669
Net operating profit after tax (NOPAT)
261,828
Operating assets
11,852,828
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Assume that net operating profit margin (NOPM) and net operating
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Consider the following stock price and shares outstanding information. Consider the following stock price and shares...
Consider the following stock price and shares outstanding
information.
Consider the following stock price and shares outstanding
information.
DECEMBER 31, Year 1
DECEMBER 31, Year 2
Price
Shares
Outstanding
Price
Shares
Outstanding
Stock K
$19
100,000,000
$28
100,000,000
Stock M
76
2,400,000
40
4,800,000a
Stock R
44
25,000,000
49
25,000,000
aStock split two-for-one during the
year.
Compute the beginning and ending values for a price-weighted
index and a market-value-weighted index. Assume a base value of 100
and Year 1 as...
An investor obtains the following information: • Stock price today = $120 • Stock price one...
An investor obtains the following
information:
• Stock price today = $120
• Stock price one year from today can take two values:
$110 or $130
• Exercise price = $120
• Risk free interest rate = 5% per annum
What should be the price of a put option on the given
stock under these conditions (use discrete
discounting)?
The current spot price of the British Pound in USD is USD 1.25. The USD risk-free...
The current spot price of the British Pound in USD is USD 1.25.
The USD risk-free rate is 2% while the British Pound risk-free rate
is 3% for all maturities. Both rates are annual and continuously
compounded. a) Calculate the futures price of the British Pound in
USD for delivery in six months. b) Given the same spot rate and the
same British Pound risk-free rate, calculate the implied annual
risk-free rate in USD if the price of the equity...
The current spot price of the British Pound in USD is USD 1.25. The USD risk-free...
The current spot price of the British Pound in USD is USD 1.25.
The USD risk-free rate is 2% while the British Pound risk-free rate
is 3% for all maturities. Both rates are annual and continuously
compounded.
a) Calculate the futures price of the British Pound in USD for
delivery in six months.
b) Given the same spot rate and the same British Pound risk-free
rate, calculate the implied annual risk-free rate in USD if the
price of the equity...
The current spot price of the British Pound in USD is USD 1.25. The USD risk-free...
The current spot price of the British Pound in USD is USD 1.25.
The USD risk-free rate is 2% while the British Pound risk-free rate
is 3% for all maturities. Both rates are annual and continuously
compounded.
a) Calculate the futures price of the British Pound in USD for
delivery in six months.
b) Given the same spot rate and the same British Pound risk-free
rate, calculate the implied annual risk-free rate in USD if the
price of the equity...
The current spot price of the British Pound in USD is USD 1.25. The USD risk-free...
The current spot price of the British Pound in USD is USD 1.25.
The USD risk-free rate is 2% while the British Pound risk-free rate
is 3% for all maturities. Both rates are annual and continuously
compounded.
a) Calculate the futures price of the British Pound in USD for
delivery in six months.
b) Given the same spot rate and the same British Pound risk-free
rate, calculate the
implied annual risk-free rate in USD if the price of the equity...
Consider the following stock information (price and number of shares outstanding): Stock G Stock A Stock...
Consider the following stock information (price and number of
shares outstanding):
Stock G
Stock A
Stock Q
P0
$70
$85
$105
Q0
200
500
300
P1
$84
$81
$110
Q1
200
500
300
P2
$20
$85
$24
Q2
800
500
1500
1. Based on the information given, for a price-weighted index of
the three stocks calculate:
1.1. the rate of return for the first period (t=0 to t=1).
Interpret your answer.
1.2. the value of the divisor in the second...
You are given the following information concerning options on a particular stock: Stock price =...
You are given
the following information concerning options on a particular
stock:
Stock
price
=
$62
Exercise
price
=
$60
Risk-free
rate
=
5% per year,
compounded continuously
Maturity
=
3 months
Standard
deviation
=
45% per
year
a.
What is the intrinsic
value of each option? (Leave no cells blank - be certain to
enter "0" wherever required. Do not round intermediate
calculations.)
Value
Call
option
$
Put
option
$
b.
What is the time...
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