Stocks A and B have the following historical returns:

(a) Calculate the average rate of return and standard deviation of returns (as percents) for each stock during the 5-year period. (Round your standard deviations to two decimal places.)

stock A average rate of return %

standard deviation %

stock B average rate of return %

standard deviation %

(b) Assume that someone held a portfolio consisting of 50% of stock A and 50% of stock B and that the average annual realized returns and past volatility of each stock are unbiased estimators of their expected returns and future volatility. What is the portfolio's expected return and the volatility of next year's returns (as percents)? The correlation between the returns of the two stock is 90.83%. (Round your answers to two decimal places.)

expected return %

volatility %

Acme Materials is a publicly traded company on the NYSE. On October 15, 2021, at 10:46am, company ACME materials, has traded between the price range of $2400 and $2300. Where, $2400 is the high of the range and $2300 is the low of the range.

Fact: As of 10:46am,

- There is a 75% probability that either $2400 will be thehighest price of the day

or

$2300 will be the lowest price of the day.

(Meaning there is a 25% probability that neither 2400 or 2300 will be the high or low of the day.)
Probability of both events occuring together is not provided

Question 1: What is the probability that $2400 is the highest price of the day?

Question 2: Please list / define, what statistical principles and or formula’s make this answer true? How do I get to understandthis answer?

Question 3: I have basic high school math skills, what resourcescan I use to further my understanding of the underlying principles to this solution?

1)What are the benefits of restructuring and please provide two real life examples.

2) Discuss the objectives of corporate governance and why this has led to increased costs for publicly traded companies.

3) What are the key elements of business valuations and how would you value Walmart?

The management of Dandin Company is considering two choices for the best of investment portfolio that is either (1) a combination of financial assets A and B or (2) a combination of financial assets A and C. The planned investment is 50 per cent for each asset component in each portfolio.

The following are the estimated returns for all the three types of financial assets:

Table 1: Expected Return (%) of Financial Assets
Year A B C
2003 12 16 12
2004 14 14 14
2005 16 12 16

1)Calculate the expected return for each portfolio.
2)Calculate the standard deviation for each portfolio.
3)Choose the portfolio that Dandin Company should invest.

Williams 400 Company, a publicly traded company, recently issued an RFP for quarterly reviews and the annual audit. The company is generally perceived to be a desirable client and is expected to be extremely profitable for whichever firm lands the engagement. Shapiro, LLP, a public accounting firm, wishes to propose for the Williams 400 Co. engagement.

Required:

(a) What potential sources can Shapiro, LLP, utilize to gather information about the Williams 400 Company?

(b) After researching the company, what should Shapiro, LLP, consider concerning the staffing needs of the audit?

(c) If Shapiro, LLP, determines that Williams 400 Company falls within a suitable level of risk, and expected engagement profitability, and that the firm has sufficient staff to perform the engagement, what are the next steps in the client proposal-acceptance process?

Maverick company is a publicly-traded company, with 20 million shares trading at $ 70 a share and $ 600 million in debt (market value as well as book value) outstanding. The firm derives 70% of its value from cloud storage and hosting, and the remaining 30% from technical service. The un-levered beta is 0.8 for firms in the cloud business and 1.2 for firms in the technical service business. Maverick company is rated A and can borrow money at 5%. The risk-free rate is 2% and the market risk premium is 8%; the corporate tax rate is 30%, and the firm has a capital gains tax rate of 20%

1. Estimate the cost of capital for Maverick Company.

How can a publicly traded corporation lower the chances that key managers will pursue their own interests at the expense of the stockholders? At the expense of the employees?

are you able to find direct labor hours of publicly traded companies? if so where would i find best buys?

Which of the following did NOT result from the Sarbanes-Oxley Act?

Multiple Choice

• the creation of a five-member Public Company Accounting Oversight Board

• the reduction of the “Big Five” accounting firms to the “Big Four”

• the requirement that chief executives and chief financial officers of publicly-traded corporations certify their financial statements

• the requirement that accounting firms maintain the same lead auditor for a company for at least ten years