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 |
5,602.28 |
|
2012 |
7.62 |
0.85 |
55.75 |
2.00 |
4,705.97 |
Estimate Bartman’s and Reynolds’s betas by running regressions of their returns against the index’s returns. (Hint: Refer to Web Appendix 8A.) Are these betas consistent with your graph? in excel
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8-22. Evaluating Risk and Return Bartman Industries’s and Reynolds Inc.’s stock prices and dividends, along with...
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...