Question: Spreadsheet Problem Start with the partial model in the file FM12 Ch 06 P14 Build a Model.xls from the textbook's Web site. Bartman Industries' and

 Spreadsheet Problem Start with the partial model in the file FM12

Spreadsheet Problem Start with the partial model in the file FM12 Ch 06 P14 Build a Model.xls from the textbook's Web site. Bartman Industries' and Reynolds Incorporated's stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Bartman Industries Reynolds Incorporated Market Index Year Stock Price Dividend Stock Price Dividend includes Divs. 2007 $17.250 $1.15 $48.750 $3.00 11,663.98 2006 14.750 1.06 52.300 2.90 8,785.70 2005 16,500 1.00 48.750 2.75 8,679.98 2004 10.750 0.95 57.250 2.50 6,434.03 2003 11.375 0.90 60.000 2.25 5,602.28 2002 7.625 0.85 55.750 2.00 4,705.97 a. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate average returns over the 5-year period. (Hint: Remember, returns are 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 dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 2002 because you do not have 2001 data.) b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.) Now calculate the coefficients of variation for Bartman, Reynolds, and the Market Index. d. Construct a scatter diagram graph that shows Bartman's and Reynolds's returns on the vertical axis and the Market Index's returns on the horizontal axis

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