Question
In: Statistics and Probability
A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks...
A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks differed over the past 5 years. He obtained a simple random sample of eight companies from each of the three sectors and obtained the 5-year rates of return shown in the accompanying table (in percent). Complete parts (a) through (d) below.
Are the mean rates of return different at
α=0.05 level of significance?
Use technology to find the F-test statistic for this data set.
Find the P=Value
Financial Energy Utilities
10.73 12.89 11.88
15.05 13.96 5.76
17.01 6.43 13.46
5.07 11.19 9.90
19.59 18.93 3.95
8.16 20.73 3.44
10.38 9.60 7.11
6.52 17.40 15.70
Solutions
orchestra answered 1 year agoRelated Solutions
A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks...
A stock analyst
wondered whether the mean rate of return of financial, energy, and
utility stocks differed over the past 5 years. He obtained a simple
random sample of eight companies from each of the three sectors and
obtained the 5-year rates of return shown in the accompanying
table (in percent).
Financial
Energy Utilities
10.76 12.89 11.88
15.05 13.91 5.76
17.21 6.43 13.67
5.03 11.23 9.90
19.50 18.79 3.95
8.21 20.73 3.44
10.38 9.60 7.11
6.52 17.40 15.70
(a) State...
A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks...
A stock analyst wondered whether the mean rate of return of
financial, energy, and utility stocks differed over the past 5
years. He obtained a simple random sample of eight companies from
each of the three sectors and obtained the 5-year rates of return
shown in the accompanying table (in percent). Complete parts (a)
through (d) below.
(c) Are the mean rates of return different at the α=0.05
level of significance?
Use technology to find the F-test statistic for this...
Risk and Return Sarah is a financial analyst of a portfolio consisting of the stocks shown...
Risk and Return
Sarah is a financial analyst of a portfolio consisting of the
stocks shown below.
The risk free rate is 3% and the market risk premium is 8%.
Stock H, Investment $2mil, Beta 1.4
Stock I, Investment $3mil, Beta 1.0
Stock J, Investment $5mil, Beta -0.2
Compute beta and expected return of portfolio.
(Stocks) A stock with the required rate of return of 13.54% is expected to pay a...
(Stocks) A stock with the required rate of return of 13.54% is
expected to pay a $0.81 dividend over the next year. The dividends
are expected to grow at a constant rate forever. The intrinsic
value of the stock is $22.07 per share. What is the constant growth
rate (in %, to the nearest 0.01%)? E.g., if your answer is 4.236%,
record it as 4.24.
(Stocks) A stock with the required rate of return of 13.68% is expected to pay a...
(Stocks) A stock with the required rate of return of 13.68% is
expected to pay a $1.08 dividend over the next year. The dividends
are expected to grow at a constant rate forever. The intrinsic
value of the stock is $21.65 per share. What is the constant growth
rate (in %, to the nearest 0.01%)? E.g., if your answer is 4.236%,
record it as 4.24.
Rate of return Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate...
Rate of return Douglas Keel, a financial
analyst for Orange Industries, wishes to estimate the rate of
return for two similar-risk investments, X and Y. Douglas's
research indicates that the immediate past returns will serve as
reasonable estimates of future returns. A year earlier, investment
X had a market value of $27,000; and investment Y had a market
value of $61,000. During the year, investment X generated cash
flow of $2,025and investment Y generated cash flow of $6,757. The...
An analyst determines that three stocks have the following characteristics: Stock Beta, Forecast return X 1.0...
An analyst determines that three stocks have the following
characteristics: Stock Beta, Forecast return X 1.0 10% Y 1.6 16 % Z
2.0 14 % If the risk-free rate is 4% and the expected return on the
market is 10%, which stock is: Overvalued? .......
Undervalued?...... Properly valued? ....... (Show your work)
Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for...
Douglas Keel, a financial analyst for Orange Industries,
wishes to estimate the rate of return for two similar-risk
investments, X and Y. Douglas's research indicates that the
immediate past returns will serve as reasonable estimates of future
returns. A year earlier, investment X had a market value of
$27,000; and investment Y had a market value of \$64,000. During
the year, investment X generated cash flow of $2,025 and
investment Y generated cash flow of $ 7,327. The current...
overall economic condition affect return of common stocks. suppose a financial analyst believes that four states...
overall economic condition affect return of common
stocks. suppose a financial analyst believes that four states of
the national economy are possible and each state has an equal
probability of occurrence. The estimate returns of two stocks GM
and IBM under these four states of economy are presented in the
following table.
state of
economy.
return of gm. return of ibm
negative real growth.
-11%
-3%
zero economic growth.
4.
17
modest real
growth.
9.
21
high economic growth.
28. ...
An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are...
An analyst is trying to determine whether the prices of certain
stocks on the NASDAQ are independent of the industry to which they
belong. She examines four industries and classifies the stock
prices in these industries into one of three categories
(high-priced, average-priced, low-priced).
- Provide the competing hypotheses to determine whether stock
price depends on the industry.
- Use Minitab to calculate the value of the test statistic and
approximate the p-value.
- At a 1% significance level, what...
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