finance-and-marketing
Textbook(s)
Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hart,
M. M. (2015). Personal finance (11th ed.). New
York, NY: McGraw-Hill Education .
all parts of questions must be answered, APA, Reference and good English and grammar, correct word count and, no cover sheet, just answer question. Please use citation and reference if needed. Reference goes after each question. Must use 2 references. Use the book for 1 of the reference. Each question have it own word count beside the question.This is the reference that should been used from the book, and use another good reference, Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hart, M. M., (2015), Personal finance (11th ed.), Retrieved from New York, NY: McGraw-Hill Education
1. How do you think risk should be measured? Explain why you think it is best.(Word Count 250)
2. Explain what is meant by “risk drives expected returnâ€. (Word Count 150)
3. For Asset A and for Asset B, compute the average annual return, variance, standard deviation, and coefficient of variation for the annual returns given below.
a. Asset A: 5%, 10%, 15%, 4%
b. Asset B: -6%, 20%, 2%, -5%, 10%
4. Compute the holding period returns for each security below:
Security |
Price Today |
Price One Year Ago |
Dividends Received |
Interest Received |
RR |
$20.05 |
$18.67 |
.50 |
|
WC |
$33.42 |
$45.79 |
$1.10 |
|
AC |
$1,015.38 |
$991.78 |
$100.00 |
5. Find the real return, nominal after-tax return, and real after-tax return for each of the following stocks:
Stock |
Nominal Return |
Inflation |
Tax Rate |
X |
13.5% |
5% |
15% |
Y |
8.7% |
4.7% |
25% |
Z |
5.2% |
2.5% |
28% |
6. In what ways does a proprietorship differ from a partnership? In what ways does a proprietorship differ from a corporation? (Word Count 250)
7. What information might a changing stock price give to managers? (Word Count 150)
8. What are agency costs? Give some examples. How might they be measured? (Word Count 200)