culate the probability that stock prices will rise above $215.00 Calculate the probability that stock prices...
culate the probability that stock prices will rise above $215.00
Calculate the probability that stock prices will fall below $150.00
Stock Prices
Year 1 $193.76
Year 2 $201.88
Year 3 $167.22
Year 4 $158.57
Year 5 $183.55
Year 6 $182.99
Year 7 $209.11
Year 8 $211.46
Year 9 $209.83
Based on this information alone, would you recommend buying this stock?
YES or NO
Why or why not?
Homework Answers
The stock prices have been moving in the range of $150 to $210 over the past 9 years. This indicates that the stock does not have much growth potential for the long term investing. The appreciation in the stock is negligible. Over 9 years the total return is: 209.83/193.76 = 8.3% which is very low.
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culate the probability that stock prices will rise above
$215.00
Calculate the probability that stock prices...
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following end-of-year stock prices over the last five years and
paid no dividends. Time Caswell 1 $12 2 9 3 7 4 6 5 12 Calculate
the annual rate of return for each year from the above information.
What is the arithmetic average rate of return earned by investing
in Caswell's stock over this period? What is the geometric average
rate of return earned by investing in Caswell's stock over this
period? Considering the beginning and...
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