The table below contains the Return on Assets (ROA) and the growth in sales for two...
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The table below contains the Return on Assets (ROA) and the growth in sales for two publicly traded hospitality firms - one restaurant and the other a hotel. Compute the mean and standard deviation of the ROA and sales growth. Based on the volatility of the returns and growth rate, identify which of the firms is the hotel and which one is the restaurant. Justify your choice. Date Firm A ROA 12/31/2019 5% 12/31/2018 8% 12/31/2017 6% 12/31/2016 3% 12/31/2015 14% 12/31/2014 11% 12/31/2013 9% 12/28/2012 9% 12/30/2011 3% 12/31/2010 5% Sales Growth 1% -9% 34% 18% 5% 8% 8% -4% 5% 7% Firm B ROA 13% 18% 15% 15% 12% 14% 15% 15% 17% 15% Sales Growth 0% -8% -7% -3% -7% -2% 2% 2% 12% 6% The table below contains the Return on Assets (ROA) and the growth in sales for two publicly traded hospitality firms - one restaurant and the other a hotel. Compute the mean and standard deviation of the ROA and sales growth. Based on the volatility of the returns and growth rate, identify which of the firms is the hotel and which one is the restaurant. Justify your choice. Date Firm A ROA 12/31/2019 5% 12/31/2018 8% 12/31/2017 6% 12/31/2016 3% 12/31/2015 14% 12/31/2014 11% 12/31/2013 9% 12/28/2012 9% 12/30/2011 3% 12/31/2010 5% Sales Growth 1% -9% 34% 18% 5% 8% 8% -4% 5% 7% Firm B ROA 13% 18% 15% 15% 12% 14% 15% 15% 17% 15% Sales Growth 0% -8% -7% -3% -7% -2% 2% 2% 12% 6%
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Mean average sum of values number of values Standard Deviation square root of sum of value mean2 num... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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