QSO 510 2-2 Scenario Analysis Stock Options Template

The table below shows information about the performance of stocks A and B last year.   Return Standard Deviation Stock A 15 % 8.3% Stock B 14% 2.1%   What reasons will you convey to your client to justify your decision in recommending this stock? How will this recommendation impact the client?

The table below shows information about the performance of stocks A and B last year.   Return Standard Deviation Stock A 15 % 8.3% Stock B 14% 2.1% As a financial advisor, are there factors other than return and risk that should be considered in making this decision? Based on these factors, what stock would you recommend to the client?

The return of stock B is __% The volatility of stock A is __% The volatility of stock B is __%

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Analyze the given table and answer the following questions.

Use the data table to answer the question that follows.   Stock A Stock B Stock C 52W high; 52W low $87.54; $32.21 $9.68; $6.25 $37.11; $35.92 Div 0 $0.05 $0.75 P/E 36 20 7.9 Close $85.43 $6.98 $36.87 An investor's primary concern with adding a new stock to their portfolio is value for the price paid. Which stock should they choose and why?    Stock B, because lower-priced stocks are more likely to be good deals in the financial market  Stock B, because its P/E ratio means that it is earning more per share than its price  Stock C, because its relatively lower P/E ratio indicates the others may be overvalued  Stock C, because its relatively higher Div value means it is the best overall deal

Refer to the stock market quote in Table 8–1. (LG 8-5)a. What was the closing stock price for Celldex Therapeutics on February 21, 2020? b. What was the percentage change in Dropbox's stock price from February 20, 2020, and February 21, 2020? c. How many shares of California Resources Corp. stock were traded on February 21, 2020?

es The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Douglas McDonnell Dynamics General International Rockwell Index value Shares (millions) 420 450 250 2022 return 2023 return a. Calculate the initial value of the index if a price-weighting scheme is used. 1/1/22 $ 63 53 82 Price 1/1/23 $ 67 47 71 % % b. What is the rate of return on this index for the year ending December 31, 2022? For the year ending December 31, 2023? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 1/1/24 $ 84 61 87

Consider 2 stocks in the following table. We create a stock index of companies that make stuff for Spring Break. stocks QO ABC, Inc. 500 XYZ, Inc. 600 What is the initial portfolio weight for stock ABC in a market value-weighted index of these two stocks (in percent to 2 decimal places, so 10% is 10.00, not 0.10)? PO $140 $260 P1 Q1 $181 500 $230 600

Part A: True or False (20%) Please conclude weather the following statement are true or false and give me your reasons (You can explain by using knowledges learned from the class or textbooks or any other empirical facts in the financial market. Don't use your personal examples which is not representative enough.). 1. The true Market Portfolio is represented by the Standard & Poor's 500 Stock Index so it is perfectly correlated with the Standard & Poor's 500 Stock Index. 2 Since we know CAPM does not hold in the real financial market, it is useless to investors. 3. Investors usually prefer purchasing in-the-money options since in-the-money options are much cheaper than out-of-money options. 4. In a bankruptcy, bond investors have priority over shareholders in claims on the company's asset so bond holders are less vulnerable. However, buying corporate bonds is not a kind of riskless investment.

Provide calculation this question general financial

You have the following information:   Stock Shares Outstanding BOY Price EOY Price L 3,000 $ 15 $ 28 K 57,000 $ 31 $ 35     You want the beginning price-weighted index of these two stocks to be 500. Given this, what is the ending index value? Multiple Choice   A. 408.33 B. 487.08 C. 511.19 D. 576.09 E. 612.24

You are given the following information concerning a stock and the market Year 2017 2018 2019 2020 2021 2022 Returns Market 18% 11 12 -14 37 15 Correlation Beta a. Calculate the average return and standard deviation for the market and the stock. Note: Use Excel to complete the problem. Enter your answers as a percent rounded to 2 decimal places. Average return Standard deviation Stock 34% 27 3 -21 16 22 Market % Stock % % b. Calculate the correlation between the stock and the market, as well as the stock's beta. Note: Use Excel to complete the problem. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.

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Suppose a market consists of four stocks. The number of shares outstanding for each stock as well as the stock prices in two consecutive days are as follows: Stock A Stock B Stock C Stock D Shares outstanding 200 1000 400 3000 I $5 $30 $100 $40 Ро $15 $25 $80 $50 a) Compute the percentage increase in the price-weighted index for this market. b) Compute the percentage increase in the value-weighted index for this market. P₁

Consider the following three stocks:    Stock Price Number of shares outstanding         Stock A $ 40     200   Stock B $ 70     500   Stock C $ 10     600                  Assume at these prices that the value-weighted index constructed with the three stocks is 490. What would the index be if stock B is split 2 for 1 and stock C 4 for 1?                   A)   265              B)   430         C)   355         D)   490         E)   1000Please Provide Justification

Please answer d part Question 3. Stocks A and B have the following historical returns:Year Stock A return Stock B return2004 (24.25%) 5.5%2005 18.5% 26.73%2006 38.67% 48.25%2007 14.33% (4.5%)2008 39.13% 43.86% a) Calculate the average rate of return for each stock during the period 2004 through 2008. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of StockWhat would the realized rate of return on the portfolio have been in each year from 2004 through 2008? What would the average return on the portfolio have been during that period?b) Calculate the standard deviation of returns for each stock and for the portfolio.c) Looking at the annual returns on the two stocks, would you guess that the correlation coefficient between the two stocks is closer to +0.8 or to –0.8?d) If more randomly selected stocks had been included in the portfolio, which of the following is the most accurate statement of what would have happened to p?I. p would have remained constant.II.…

Mary, a finance student at Amity student, holds a portfolio which consists three stocks (one each) of: stock A, stock B, and stock C. Please note the following information about these stocks: Price Return Stock A Stock B $120 20% Standard deviation 0.35 Correlation between A and B Correlation between B and C a- Questions: $84 15% 0.1 0.3 Correlation between A and C 0.4 0.2 Stock C $96 10% 0.5 Please calculate the portfolio's expected return b- and standard deviation Please calculate the portfolio's variance

You've collected the following information from your favorite financial website. (The number next to the stock name is DO.) 52-Week Price Div Yld % PE Close Net Hi Stock (Div) Palm Coal 0.36 Lake Lead Grp 1.54 SIR 2.55 Ratio Price Chg -0.24 Lo 77.40 10.43 2.6 6. 13.90 55.81 33.42 3.8 10 40.43 -0.01 131.04 50.24 70.05 2.9 5.2 10 89.08 3.07 13.95 DR Dime 0.8O 6. 15.43 -0.26 Candy Galore 0.32 35.00 20.74 1.5 28 ?? 0.18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume Investors require a return of 14 percent on SIR stock. According to your research, the growth rate in dividends for SIIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent…

Donald Gilmore has $100,000 invested in a 2-stock portfolio. $52,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer.   a. 1.00     b. 1.03     c. 1.06     d. 1.09     e. 1.12

What are the portfolio weights for a portfolio that has 115 shares of Stock A that sell for $80 per share and 90 shares of Stock B that sell for $66 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)         Stock A_________ Stock B_________

Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $140. Required: a-1. If the stock price at option expiration is $144, will you exercise your call?a-2. What is the net profit/loss on your position? (Input the amount as a positive value.)a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) b-1. Would you exercise the call if you had bought the November call with the exercise price $135?b-2. What is the net profit/loss on your position? (Input the amount as a positive value.)b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)c-1. What if you had bought the November put with exercise price $140 instead? Would you exercise the put at a stock price of $140?c-2. What is the rate of return on your position? (Negative…