Solve the following problem showing all the necessary steps and computations. 1. Using the data in the following table‚ estimate (a) the average return and volatility for each stock‚ (b) the covariance between the stocks‚ and (c) the correlation between these two stocks. A. Stock A -10+20+5-5+9/6 = 3.5% Stock B 21+30+7-3-8+25/6 = 12% B. Covariance = 1/5 (-0.1-0.035)(0.21-0.04) + (0.2-0.035)(0.3-0.12) + (0.05-0.035)(0.07-0.12) + (-0.05-0.035)(-0.03-0.12) + (0.02-0.035)(-0.08-.012)
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shield that will increase the overall value of the firm. 2. Since Stephenson is an all-equity firm with 15 million shares of common stock outstanding‚ worth $32.50 per share‚ the market value of the firm is: Market value of equity = $32.50(15‚000‚000) Market value of equity = $487‚500‚000 So‚ the market value balance sheet before the land purchase is: Market value balance sheet Assets $487‚500‚000 Total assets $487‚500‚000 Equity $487‚500‚000 Debt & Equity $487‚500‚000 3.
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Penny stocks are inexpensive and risky stocks that can sometimes value a penny or a few dollars. Generally these stocks are often found under $1.00 but most identify them as stocks that trade under $5.00. Penny stocks cannot trade on the Dow Jones or Nasdaq but over the counter. There are several reasons why such types of stocks are so economical‚ but they can potentially be very good investments. First reason why penny stocks are so cheaper is because they signify a financially troubled firm. You
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businesses‚ reduce cost through economies of scale and removal of redundant functions‚ enhance distribution‚ and increase promotional potential. New business opportunities would be created by having a broader entertainment firm that can be present in more markets. Distribution and promotion of both Viacom and Paramount would be enhanced as each would be able to utilize the other’s content on their distribution channels. The company would be a comprehensive entertainment company that could compete in every
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Stock Market Game 1 Content The students have been given imaginary money just by enrolling in the class. Each student has $100‚000 of McHolt Dollars to invest in Apple Students will have to perform analysis on the stock purchased and prepare a 2-3 page write-up about the stock and analysis (the 2-3 pages does NOT include the computation section)
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000. I invested all of money in stocks. I started to invest from first of March to fifteen of April. I purchased 6 companies’ shares for increasing my capital. There are reasons why I chose these companies for buying and selling the firms’ stocks. I got the information about the firms from companies’ website‚ Korea newspapers and experts’ reports. Conclusion I invested money to 6 companies and they brought me a profit. Total profit was $ 48230.7. My capital increased by 32 %. Companies’ profit effects
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Stock Market Project August 25‚ 2008 The purpose of this paper is to explain the outcomes and decisions involved in investing one million dollars in four various stocks. Choosing a stock to invest in and how much to invest can be very difficult. There are many web sites available online to make the decision a little easier. This paper will explain why AT&T‚ Exxon‚ Apple and Wal-mart were the chosen four and the final outcome of the investment after four weeks. There are an overwhelming
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think will have rising stock prices. Think about companies that you use or know are popular. Remember‚ not all companies are public companies. You’ll need to check the New York Stock Exchange to find out if you can actually buy shares in this company. Once you’ve settled on a company‚ find its stock price from one year ago and for today. Write a journal entry about your imagined investment. Answer the following questions as you write. 1. Why did you think buying this stock would be a good idea
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Confidence Submitted by Adriana Chan 2001473967 Q.1) What is Starbucks’ strategy? To build the most recognized and respected coffee brand in the world‚ Starbucks has to adopt a Focus Differentiation strategy. From sourcing to marketing‚ Starbucks has a clear and focus strategy or policy to ensure the company grows towards the direction of their long-term goal. 1) Market share strategy: As Henderson (1979) states‚ “In a competitive business‚ it (market share) determines relative profitability.” In order
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Stock Market Presentation Project I invested $999.06 of my available $1000 in three companies. 1. Name of stocks: Estee Lauder‚ Ford‚ Verizon. 2. Initial Closing Value of each stock (per share): Estee Lauder-$60.99 Ford-$10.39 Verizon-$44.58 3. Number of shares purchased for each stock: Estee Lauder-9 shares Ford-9 shares Verizon-8 shares Stock Market Investments: | Name of stocks | Abbreviation | Number of Shares Purchased
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