Syntex is considering an investment in one of two stocks. given the

Question 1

Don't use plagiarized sources. Get Your Custom Essay on
Syntex is considering an investment in one of two stocks. given the
Just from $13/Page
Order Essay

Syntex is considering an investment in one of two stocks. Given the information that follows, which investment is better, based on the risk (the standard deviation) and return?

Common Stock    A                                                                      Common Stock     B                                      

Probability           Return                                                       Probability               Return               

0.20                             10%                                                                      0.10                                  -7%                                                                

0.60                             16%                                                                      0.40                                    5%

0.20                             21%                                                                      0.40                                   13%

                                                                                                                     0.10                                   20%

Given the information in the table, what percent is the rate of return for Stock A?

 

Question 2

On December 5, 2007, the common stock of Google, Inc. (GOOG) was trading at $698.51. One year later, the shares sold for $283.99. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 5, 2007? The rate of return you would have earned is what percent?

Question 3

Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no dividends.

Time                                                   Caswell

1                                                                                                                 $9

2                                                                                                                 14

3                                                                                                                 10

4                                                                                                                   7

5                                                                                                                   9

a. Calculate the average rate of return for each year from the above information.

b. What is the arithmetic average rate of return earned by investing in Caswell’s stock over this period?

c. What is the geometric average rate of return earned by investing in Caswell’s stock over this period?

d. Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return best describes the annual rate of return earned over the period (arithmetic or geometric)?

e. The annual rate of return at the end of year 2 is what percent

 

Question 4

 

The common stock of Plaxo Enterprises had a market price of $10.44 on the day you purchased it just one year ago. During the past year, the stock paid a dividend of $1.43 and closed at a price of $11.66. What rate of return did you earn on your investment in Plaxo’s stock? The rate of return you earned on Plaxo’s stock is what percent?

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more