Given below is hypothetical data on two stocks on the LUSE and the market data (All Lusaka Share Index). The market data already includes dividends paid during the year.
Stock 1 Stock 2 Market Index
Year Stock Price Dividend Stock Price Dividend (Includes Dividends)
2013: K25.88 K1.73 K73.13 K4.50 17,495.97
2012: 22.13 1.59 78.45 4.35 13,178.55
2011: 24.75 1.50 73.13 4.13 13,019.97
2010: 16.13 1.43 85.88 3.75 9,651.05
2009: 17.06 1.35 90.00 3.38 8,403.42
2008: 11.44 1.28 83.63 3.00 7,058.96
Required:
Determine the systematic risk for Stock 2
Given below is hypothetical data on two stocks on the LUSE and the market data (All Lusaka Share Index). The market data already includes dividends paid during the year. Stock 1 Stock 2 Market IndexYear Stock Price Dividend Stock Price Dividend (Includes Dividends)2013: K25.88 K1.73 K73.13 K4.50 17,495.972012: 22.13 1.59 78.45 4.35 13,178.552011: 24.75 1.50 73.13 4.13 13,019.972010: 16.13 1.43 85.88 3.75 9,651.052009: 17.06 1.35 90.00 3.38 8,403.422008: 11.44 1.28 83.63 3.00 7,058.96 Required:Question textWhat is the appropriate average...
Given below is hypothetical data on two stocks on the LUSE and the market data (All Lusaka Share Index). The market data already includes dividends paid during the year. Stock 1 Stock 2 Market IndexYear Stock Price Dividend Stock Price Dividend (Includes Dividends)2013: K25.88 K1.73 K73.13 K4.50 17,495.972012: 22.13 1.59 78.45 4.35 13,178.552011: 24.75 1.50 73.13 4.13 13,019.972010: 16.13 1.43 85.88 3.75 9,651.052009: 17.06 1.35 90.00 3.38 8,403.422008: 11.44 1.28 83.63 3.00 7,058.96 Required:Question textDetermine the systematic risk for...
Given below is hypothetical data on two stocks on the LUSE and the market data (All Lusaka Share Index). The market data already includes dividends paid during the year. Stock 1 Stock 2 Market IndexYear Stock Price Dividend Stock Price Dividend (Includes Dividends)2013: K25.88 K1.73 K73.13 K4.50 17,495.972012: 22.13 1.59 78.45 4.35 13,178.552011: 24.75 1.50 73.13 4.13 13,019.972010: 16.13 1.43 85.88 3.75 9,651.052009: 17.06 1.35 90.00 3.38 8,403.422008: 11.44 1.28 83.63 3.00 7,058.96 Required: i. Prepare a table presenting...
8-22. Evaluating Risk and Return Bartman Industries’s and Reynolds Inc.’s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2012–2017. The Winslow 5000 data are adjusted to include dividends. Bartman Industries Reynolds Inc. Winslow 5000 Year Stock Price Dividend Stock Price Dividend Includes Dividends 2017 $17.25 $1.15 $48.75 $3.00 $11,663.98 2016 14.75 1.06 52.30 2.90 8,785.70 2015 16.50 1.00 48.75 2.75 8,679.98 2014 10.75 0.95 57.25 2.50 6,434.03 2013 11.37 0.90 60.00 2.25...
Bartman Industries's and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015–2020. The Winslow 5000 data are adjusted to include dividends.Bartman IndustriesReynolds Inc.Winslow 5000YearStock PriceDividendStock PriceDividendIncludes Dividends2020$16.95$1.15$50.50$2.90$12,324.64201914.301.0653.752.809,133.05201816.101.0050.502.659,022.59201710.550.9558.702.356,582.21201610.970.9062.152.105,773.4620157.520.8557.201.854,800.88Assume the risk-free rate during this time was 2%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using their average returns. Round your answers to four decimal places.Bartman IndustriesReynolds Inc.Winslow 5000Sharpe ratioEstimate Bartman's and Reynolds's betas by running regressions...