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Home Explore FIN 350 Week 7 Complete

FIN 350 Week 7 Complete

Published by helpme.dodo, 2016-11-12 00:23:11

Description: FIN 350 Week 7 Complete
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FIN350

FIN 350 Week 7 Module 7 Practice Problems

Follow these instructions for completing and submitting your assignment:
1. Do all work in Excel. Do not submit Word files or *.pdf files.
2. Submit a single spreadsheet file for this assignment. Do not submit multiple files.

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FIN 350 Week 7 CompleteTo get this tutorial follow this link:http://dodohelp.com/FIN-350/FIN-350-Week-7-Complete-Grand-CanyonContact us at:[email protected] 350 Week 7 Module 7 Practice ProblemsFollow these instructions for completing and submitting your assignment:1. Do all work in Excel. Do not submit Word files or *.pdf files.2. Submit a single spreadsheet file for this assignment. Do not submit multiple files.3. Place each problem on a separate spreadsheet tab.4. Label all inputs and outputs and highlight your final answer.5. Follow the directions in the “Guidelines for Developing Spreadsheets.”P8–9 Rate of return, standard deviation, and coefficient of variation Mike is searchingfor a stock to include in his current stock portfolio. He is interested in Hi-Tech,Inc.; he has been impressed with the company’s computer products and believesthat Hi-Tech is an innovative market player. However, Mike realizes that anytime you consider a technology stock, risk is a major concern. The rule he followsis to include only securities with a coefficient of variation of returns below 0.90.Mike has obtained the following price information for the period 2012 through2015. Hi-Tech stock, being growth-oriented, did not pay any dividends during these4 years.Stock priceYear Beginning End2012 $14.36 $21.552013 21.55 64.782014 64.78 72.382015 72.38 91.80a. Calculate the rate of return for each year, 2012 through 2015, for Hi-Tech stock.b. Assume that each year’s return is equally probable, and calculate the average returnover this time period.

c. Calculate the standard deviation of returns over the past 4 years. (Hint: Treatthese data as a sample.)d. Based on b and c, determine the coefficient of variation of returns for the security.e. Given the calculation in d, what should be Mike’s decision regarding the inclusionof Hi-Tech stock in his portfolio?P8–14 Portfolio analysis You have been given the expected return data shown in the firsttable on three assets—F, G, and H—over the period 2016–2019.Expected returnYear Asset F Asset G Asset H2016 16% 17% 14%2017 17 16 152018 18 15 162019 19 14 17Alternative Investment1 100% of asset F2 50% of asset F and 50% of asset G3 50% of asset F and 50% of asset HAssetExpectedreturn, rRisk (standarddeviation), srV 8% 5%W 13 10Using these assets, you have isolated the three investment alternatives shown in the


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