Question

Question 11 1 pts It is your job as an analyst to forecast next years stock return for BFred Inc. Through lots of research a
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Expected Return = \sum_{i=1}^{n} [Probability(i) * Return(i)]

= [0.11 * -55%] + [0.27 * -10%] + [0.36 * 14.37%] + [(1 - 0.11 - 0.27 - 0.36) * 52.54%]

= -6.05% - 2.70% + 5.17% + 13.66%

= 10.08%

Add a comment
Know the answer?
Add Answer to:
Question 11 1 pts It is your job as an analyst to forecast next year's stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • It is your job as an analyst to forecast next year's stock return for BFred Inc....

    It is your job as an analyst to forecast next year's stock return for BFred Inc. Through lots of research and hard work, you have developed the following set of possible outcomes and associated probabilities. Crash Correction Growth Average 17.78% -55.00% - 10.00% 48.67% Expected Return Probability 0.13 0.29 0.36 Otherwise What is your expected return as a percentage for the stock of BFred Inc. next year?

  • It is your job as an analyst to forecast next year's stock return for BFred Inc....

    It is your job as an analyst to forecast next year's stock return for BFred Inc. Through lots of research and hard work, you have developed the following set of possible outcomes and associated probabilities. Crash Correction Average Growth Expected Return -55.00% -10.00% 16.30% 58.04% Probability 0.11 0.25 0.38 Otherwise What is your expected return as a percentage for the stock of BFred Inc. next year?

  • It is your job as an analyst to forecast next year's stock return for BFred Inc....

    It is your job as an analyst to forecast next year's stock return for BFred Inc. Through lots of research and hard work, you have developed the following set of possible outcomes and associated probabilities. Crash Correction Growth Average 19.79% 1-55.00% - 10.00% 46.86% Expected Return Probability 0.14 0.27 0.40 Otherwise What is your expected return as a percentage for the stock of BFred Inc. next year?

  • 1) An analyst gathered the following financial information about a firm: Estimated (next year’s) EPS                         &nbsp

    1) An analyst gathered the following financial information about a firm: Estimated (next year’s) EPS                                       $10 per share Dividend payout ratio                                                             40% Required rate of return                                                           12% Expected long-term growth rate of dividends                       5% What is the analysts’ estimate of intrinsic value? Show work. 2) An analyst has made the following estimates for a stock: dividends over the next year $.60 long-term growth rate                         13% Intrinsic value                                     $24 per share The current price of the shares is $22. Assuming the...

  • An analyst has been following American Dream stock. He projects the following dividends for the next...

    An analyst has been following American Dream stock. He projects the following dividends for the next three years YEAR Dividend $161 $2.20 $1.18 The analyst notes that American Dream stock has a required retum of 10.30%. The analyst projects that dividends will grow at a constant rate of 5.00% per year after year 3. What is the current price of the stock if his assumptions are correct? Answer format: Currency: Round to: 2 decimal places Caskey Inc. is experiencing a...

  • only question number 3 on the first screenshot. LO1 1. w LO1 2. Stock Values Fowler,...

    only question number 3 on the first screenshot. LO1 1. w LO1 2. Stock Values Fowler, Inc., just paid a dividend of $2.55 per share on its stock. The dividends are expected to grow at a constant rate of 3.9 percent per year, indefinitely. If investors require a return of 10.4 percent on this stock, what is the current price? What will the price be in 3 years? In 15 years? Stock Values The next dividend payment by Hoffman, Inc.,...

  • Please asnwer all the question 1) Your portfolio consists of $3,000 in ABC stock, $4,500 of...

    Please asnwer all the question 1) Your portfolio consists of $3,000 in ABC stock, $4,500 of DEF stock and $2,500 of GHI stock. Expected rates of return are ABC 5%, DEF 12%, and GHI 16%. What is the portfolio expected rate of return? A) 10.9% B) 12.0% C) 11.4% D) 16.0% 2) You are considering investing in a portfolio consisting of 40% Electric General and 60% Buckstar. If the expected rate of return on Electric General is 16% and the...

  • #1 Van Buren, Inc., currently pays $2.24 per share in dividends on its common stock. Dividends...

    #1 Van Buren, Inc., currently pays $2.24 per share in dividends on its common stock. Dividends are expected to grow at 7.00 % per year forever. If you require a 13.00 % rate of return (i.e., the discount rate) on this investment, what value would you place on a share of Van Buren common stock? Assume that the current dividend was just paid. Answer format: Currency: Round to 2 decimal places # 2 Bad Investment Incorporated has "promised" investors to...

  • pls answer the questions that are fully visible Question 34 (1 point) A stock is expected...

    pls answer the questions that are fully visible Question 34 (1 point) A stock is expected to pay a dividend of $0.75 at the end of the next year. The required rate of return is 12.5%, and the expected constant growth rate is g -8.5% forever. What is the stock's intrinsic value? A) $19.22 OB) $18.28 C) $19.70 OD) $18.75 $17.82 Question 35.(1 point) Which one of the following bonds is the least sensitive to changes in market interest rates,...

  • Please read the article bellow and discuss the shift in the company's approach to genetic analysis....

    Please read the article bellow and discuss the shift in the company's approach to genetic analysis. Please also discuss what you think about personal genomic companies' approaches to research. Feel free to compare 23andMe's polices on research with another company's. Did you think the FDA was right in prohibiting 23andMe from providing health information? These are some sample talking points to get you thinking about the ethics of genetic research in the context of Big Data. You don't have to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT