Question: please answer all Excel Activity: Evaluating Risk and Return Bartman Industries's and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are



Excel Activity: Evaluating Risk and Return Bartman Industries's and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-202 Year 2020 2019 2018 2017 2016 2015 Bartman Industries Stock Price Dividend $17.20 $1.12 14.65 1.02 16.45 0.95 10.60 0.90 11.37 0.85 7.57 0.80 Reynolds Inc. Stock Price Dividend $47.00 $2.85 50.95 2.80 47.00 2.65 56.40 2.40 59.75 2.15 55.30 1.95 Winslow 5000 Includes Dividends $11,417.08 8,588.53 8,467.02 6,343.56 5,489.70 4,537.36 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the question to enter negative values, if any. X Download spreadsheet Evaluating Risk and Return-26884b.xlsx Ilse the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index. Then calculate each entity's average the ending price to get the capital gain or loss, adding the dividend to the capital gain or wou do not have 2014 data.) ROL Download spreadsheet Evaluating Risk and Return-26884b.xlsx a. Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index. Then calculate each entity's average return overt calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and di dividends are already included in the index. Also, you cannot calculate the rate of return for 2015 because you do not have 2014 data) Round your ans Year 2020 % Bartman Industries 25.05 % -4.74 % 64.15% 1.14 % 61.43 % Reynolds Inc. -2.16 14.36 - 11.97 Winslow 5000 32.93 % 1.44 06 % 2019 2018 2017 2016 Average % 33.47 % 15.55 % -1.59 99% mo 11.93% 2.12 % 20.99 20.88 29.41 % b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the sample standard deviation formula, which your answers to two decimal places. Bartman Industries Reynolds Inc. Standard deviation 26.50 % Winslow 5000 % c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places Winslow 5000 2016 Average % 61.43 29.41 11.93 % 15.55 20.99% 20.88% % 2.12% b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the sample standard devotion form.hich corresponds to the your answers to two decimal places. Bartman Industries Reynolds Inc. Winslow 5000 Standard deviation 26.50 % % c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places Bartman Industries Reynolds Inc. Winslow 5000 Coefficient of variation d. Assume the risk-free rate during this time was 2%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using the average ratum und our Bartman Industries Reynolds Inc. Winslow 5000 Sharpe ratio e. Construct a scatter diagram that shows Bartman's and Reynolds's returns on the vertical axis and the Winslow 5000 Index's returns on the hortora Che correct The correct graph is graph A B B Stocks Returns vs Index's Returns 70% A. 701 ON t. Estimate Bartman's and Reynolds's betas by running regressions of their returns against the index's retums. Round your answers to four decimal places Bartman's betat Reynolds's beta: Are these betas consistent with your graph? These betas ar consistent with the scatter diagrams, 9. Assume that the risk-free rate on long-term Treasury bonds is 4.5%. Assume also that the average annual return on the Winslow 5000 is not a good estimate of the market's rec So use 10% as the expected return on the market. Use the SML equation to calculate the two companies' required returns. Round your answers to two decimal places Bartman's required return: Reynolds's required return: h. If you formed a portfolio that consisted of 50% Bartman and 50% Reynolds, what would the portfolio's beta and required retum be? Round your answer for the peettoo's beta to the portfolio's required return to two decimal places Portfolio's beta: % Portfolio's required return 1. Suppose an investor wants to include Bartman Industries's stock in his portfolio Stocks A, B, and are currently in the portfolio, and there are 0.725, 0.818.1.132 portfolio's required return if it consists of 30% of Bartman, 10% of Stock A, 35% of Stock, and 25 of Stock C. Round your answer to two decal
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