Sou Phonyothy
QSO-510
2-2 Scenario Analysis: Stock Options
As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B.
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%
1. As a financial advisor, are there factors other than return and risk that should be considered in making this decision?
Before involving yourself with stocks, one must be aware of the diverse issues that affect stocks. Having a more substantial historical data set for both stocks should be measured if available, to observe how the stock has performed beforehand is to use as an indication of how it will play out in the future. Using past yearly or monthly returns on capital to better analyze the variance of the past returns of each capital. Also understanding the client’s risk tolerance would be helpful as well to determine the best possible decision between stocks.
2. Based on these factors, what stock would you recommend to the client? Without having much information about the two possible stocks, as well as
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The Standard Deviation is much smaller at 6.2% compared to Stock A. “Standard deviation is calculated based on the mean.” (WHAT IS STANDARD DEVIATION, n.d.) The space of each data point from the mean is squared, summed and averaged to find the variance. The difference is a result of taking the mean of the data points, subtracting the mean from each data point individually, squaring each of these results and then taking another mean of these squares. Ordinarily, the smaller a stock’s standard deviation, the less volatile or risky it is. The higher the standard differential, the more scattered the profits are, consequently is more dangerous. The additional 1% of the profit produced by Stock A is not worth the risk associated with Stock
What are other decision alternatives? What are the reasons of choosing each alternative? What will these reasons look like in five years?
These decisions may include selling and buying of stocks, bonds, futures, currencies and so on. Stocktrak.com helps to implement the investment decision process as it includes evaluation tools for securities being traded at stock market. The website provides graphical historical performance of stock prices and this graphical performance can be analyzed for making different investment decisions related to those stocks. This project will be investing the given specified amount in a portfolio. The portfolio investment will help to reduce the level of risk associated with investment. With the reduction in level of risk, the average return of portfolio investment will increase as compare to individual investments. Thus, portfolio investment is better option for investment as compare to individual
The financial performance of the company over the years six t thirteen is shown in table no 7. The data includes Revenue generated over the years, Earning per share, Return on Investment and Stock Prices. Chart 5 shows that there has been a decline in the revenues generated. Charts 6 to 8 all show a decline in Earnings per Share, Return on Equity and Stock Prices suggesting a poor financial performance by the company.
A and C will offer the same mean return yet less variance than B. This is pictured
How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?
I have invoice 2802375 and 2824138 both have item number 100241 (single use aux water jet) that were shipped to Emory Healthcare, however, the invoice states that Medivators shipped the items as EACH instead of a BOX of 50. Meanwhile, I called Medivators customer services and they told me that the items were shipped by the BOX. Therefore, I will need a current invoice that declares the correct unit of measure that was shipped to
On August 17, 2015 at approximately 1:27 AM I, Deputy Bowring, was dispatched to 238 Cr 4568 regarding a disturbance.
According to CCP §437c, if there is a single issue of material fact, a motion (for summary judgment) must be denied. Tommy did provide sufficient material facts to allow a jury to find in his favor. Specifically by relaying the facts that Peter Plaintiff’s collision with Jack was too remote for liability to be put on Tommy and that Tommy did not knowingly furnish alcohol to Jack, demonstrating that there was not a prima facie violation of Cal. Civil Code §1714.3 Therefore, the court erred in granting Peter Plaintiff’s motion for summary judgment and this court must reverse that wrong.
Goodson are considering the decision base on two main dimensions. First is the investing experience
This is the assessment of the historical and future performances of the two companies in order to fully project internal and external factors that will affect the forecasts. The purpose is to identify trends, year to year changes, in order to assess whether the two companies’ performance are stable or sporadic and highly volatile.
(2) How does the riskiness of this two-stock portfolio compare with the riskiness of the individual stocks if they were held in isolation?
Also briefly indicate how your advice would change if other assets became available to the investor.
Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.
The daily opening and closing stock prices for Microsoft, Apple, and Staples were generated from Yahoo into an excel workbook. Using excel, the difference between
The results of the company’s return on assets ratio measuring profitability overall was 7.2% in 2010 and 8.1% in 2011 having an increase of 0.9%. Return of common stock ratio that portrays the