You are looking to invest $1000 into the stock market. Based on your observation of the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are looking to invest $1000 into the stock market. Based on your observation of the stock market, you have narrowed down your investment choice between Winky Wonka's Chocolate Factory, and Starbobs, the coffee franchise. From watching the stock market, you know that the mean closing price of Winky Wonka's stock is $56.8 with a standard deviation of $4.8. The mean closing price of Starbobs' stock is $147.6 with a standard deviation of $1.4. In order to compare the two companies, you want to use coefficient of variation for the closing prices of each company. Calculate the coefficients of variation and report the difference between two values CV Startbob. of coefficient of variations: CVWinky Wonka Note: 1- Round your intermediate numbers to 4 decimal places. 2- round your final answer to 2 decimal places. Enter your final answer with 2 decimal places. 3- CV refers to the coefficient of variation for that stock closing price. Your Answer: You are looking to invest $1000 into the stock market. Based on your observation of the stock market, you have narrowed down your investment choice between Winky Wonka's Chocolate Factory, and Starbobs, the coffee franchise. From watching the stock market, you know that the mean closing price of Winky Wonka's stock is $56.8 with a standard deviation of $4.8. The mean closing price of Starbobs' stock is $147.6 with a standard deviation of $1.4. In order to compare the two companies, you want to use coefficient of variation for the closing prices of each company. Calculate the coefficients of variation and report the difference between two values CV Startbob. of coefficient of variations: CVWinky Wonka Note: 1- Round your intermediate numbers to 4 decimal places. 2- round your final answer to 2 decimal places. Enter your final answer with 2 decimal places. 3- CV refers to the coefficient of variation for that stock closing price. Your Answer:
Expert Answer:
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
Students also viewed these mathematics questions
-
The Seitz Corporation, a QS 9000 certified organization based in Torrington, Connecticut, is a leading designer and manufacturer of thermoplastic motion control systems and components and an industry...
-
Corporations with international operations need to assess the risks associated with setting up and maintaining operations in different regions of the world. Consideration of the risks include...
-
You have been bequeathed a legacy of £100,000 and you are considering placing the entire funds either in shares of company A or in shares in company B. When you told your stock broker about...
-
Corning-Howell reported taxable income in 2013 of $120 million. At December 31, 2013, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as...
-
Three pieces of string, each of length L, are joined together end to end, to make a combined string of length 3L. The first piece of string has mass per unit length 1, the second piece has mass per...
-
whether the expression is a monomial. If it is, name the variable(s) and the coefficient and give the degree of the monomial. If it is not a monomial, state why not. 8/x
-
Equity capital has two roles in a financing plan. What are they?
-
Why is it sometimes misleading to compare a companys financial ratios with other firms that operate in the same industry?
-
11. Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to the Process Providers...
-
Merline Manufacturing makes its product for $70 per unit and sells it for $144 per unit. The sales staff receives a commission of 10% of sales. Its December Income statement follows. MERLINE...
-
Read each item and select which aspect of selection standards it may or may not be violating. Question 1 options: 12345 12345 12345 Structured interviews help ensure employers are asking the right...
-
S No More Books Corporation has an agreement with Floyd Bank, whereby the bank handles $4.8 million in collections a day and requires a $480,000 compensating balance. No More Books is contemplating...
-
We have covered a bunch of Big Ideas from Computing and Information in this course so far, what you need to do is start connecting these ideas together to help you better understand a system of your...
-
Dog Up! Franks is looking at a new sausage system with an installed cost of $725,000. This cost will be depreciated straight-line to zero over the project's 7-year life, at the end of which the...
-
Required information [The following information applies to the questions displayed below] At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness,...
-
||0A|| = 30 mm ||AB|| = 100 mm ||04B|| = 90 mm ||AC|| = 45.6 mm ||BC|| = 72.5 mm w = 10 rad/s = 25 rad/s From Ex V1: 3 = 3. 64 rad/s~, w4 = 2.04 rad/s~ Find:Ag, Ac, a3, a4 W B 0
-
Create a research paper on how a piece of tax legislation becomes tax law. Your research should include: An explanation of the various levels of government involved in the process. An analysis of the...
-
(a) With not more than 300 words, examine why Malaysia missed its 2020 targets to divert 40% of waste from landfills and increase recycling rates to 22%. (10 marks) b) Why arent Malaysian recycling?...
-
A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends. If the required return on the preferred stock is 6.8 percent, what is the value of the stock?
-
A firm has an ROE of 20 percent. The industry average ROE is 12 percent. Is this a good or poor sign about the management of the firm?
-
A 7.5 percent coupon bond with 13 years left to maturity is priced to offer a 6.25 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. If this occurs,...
-
Nutrition Products, Inc., uses a traditional product costing system to assign over- head costs uniformly to all products. To meet Food and Drug Administration require- ments and to assure its...
-
The New York Times reported that Neil Simon planned to open his play London Suite off Broadway. Why? For financial reasons. Producer Emanuel Azenberg predicted the following costs before the play...
-
Agribiz Food Products, Inc. produces a wide variety of food and related products. The companys tomato canning operation relies partly on tomatoes grown on Agribizs own farms and partly on tomatoes...
Study smarter with the SolutionInn App