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  • Stock Analysis of Bartman Industries and Reynolds Incorporated

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    ane9sd
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    This document contains stock performance data for Bartman Industries and Reynolds Incorporated over several years (Part A) and calculates various risk measures for the two companies (Parts B-C). It then shows Bartman's returns compared to the market index (Part D) and determines Bartman and Reynolds' betas (Part E). The risk free rate and market risk premium are given (Part F), which are used to calculate the required returns for Bartman and Reynolds (Part G). Finally, it determines the beta and required return for a portfolio consisting of four stocks (Parts H).

    Original Description:

    finance

    Original Title

    Risk and Return

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    This document contains stock performance data for Bartman Industries and Reynolds Incorporated over several years (Part A) and calculates various risk measures for the two companies (Parts B-C). It then shows Bartman's returns compared to the market index (Part D) and determines Bartman and Reynolds' betas (Part E). The risk free rate and market risk premium are given (Part F), which are used to calculate the required returns for Bartman and Reynolds (Part G). Finally, it determines the beta and required return for a portfolio consisting of four stocks (Parts H).

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    23 views5 pages

    Stock Analysis of Bartman Industries and Reynolds Incorporated

    Uploaded by

    ane9sd
    This document contains stock performance data for Bartman Industries and Reynolds Incorporated over several years (Part A) and calculates various risk measures for the two companies (Parts B-C). It then shows Bartman's returns compared to the market index (Part D) and determines Bartman and Reynolds' betas (Part E). The risk free rate and market risk premium are given (Part F), which are used to calculate the required returns for Bartman and Reynolds (Part G). Finally, it determines the beta and required return for a portfolio consisting of four stocks (Parts H).

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    PART A

    year

    Stock price
    2004
    2003
    2002
    2001
    2000
    1999

    BARTMAN INDUSTRIES
    Divident
    $17.25
    $1.15
    14.75
    1.06
    16.5
    1
    10.75
    0.95
    11.375
    0.9
    7.625
    0.85

    average

    PART B AND C

    Standard deviation:
    Coefficient of variation:

    31.49%
    1.069652962

    The standard deviation shows that Bartman is the mosk risky and Reynolds is the least risky.
    The CV shows that the risk per unit of return of Reynolds is the highest.

    PART D

    BARTMAN VS INDEX
    70.00%
    60.00%
    50.00%
    40.00%
    30.00%
    20.00%
    10.00%
    0.00%
    0.00%
    -10.00%

    PART E

    Bartman's Beta
    Reynold's Beta

    PART F

    Risk free rate


    Market risk premium

    10.00%

    20.00%

    30.00%

    1.54
    -0.56

    6.04%
    5%

    PART G

    Expected return on market

    11.04%

    Bartman
    Required return

    13.74%

    Reynolds
    Required return

    3.24%

    Portfolio Beta

    0.49

    PART H
    Beta
    Bartman
    Stock A
    Stock B
    Stock C
    Portfolio Beta
    Required return on portfolio

    1.54
    0.769
    0.985
    1.423
    1.18
    11.93%

    TRIES
    Annual return
    24.75%
    -4.18%
    62.79%
    2.86%
    60.98%

    REYNOLDS INCORPORATED
    MARKET INDEX
    Stock price divident Annual return Includes Divs Annal return
    $48.75
    $3.00
    -1.05%
    11,663.98
    32.76%
    52.3
    2.9
    13.23%
    8,785.70
    1.22%
    48.75
    2.75
    -10.04%
    8,679.98
    34.91%
    57.25
    2.5
    -0.42%
    6,434.03
    14.85%
    60
    2.25
    11.66%
    5,602.28
    19.05%
    55.75
    2
    4,705.97

    29.44%

    2.68%

    20.56%

    9.71%
    3.63012

    13.82%
    0.672222192

    eynolds is the least risky.

    TMAN VS INDEX

    REYNOLDS VS INDEX
    15.00%
    10.00%
    5.00%
    BARTMAN VS INDEX

    0.00%
    0.00%
    -5.00%
    -10.00%

    30.00%

    40.00%

    -15.00%

    10.00%

    20.00%

    Portfolio weight
    25%
    15%
    40%
    20%

    EYNOLDS VS INDEX

    REYNOLDS VS INDEX
    30.00%

    40.00%

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