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Questions On Financial Data Reported Essay

Decent Essays

In this paper I will demonstrate the use of financial data reported in SEC’s Edgar database and data reported by Finance.Yahoo.com (Figure 2a and 2b) to access the risk and return while accessing EMCOR Group Inc. stock performance and compare the performance of EMCOR with the S&P 500.
EMCOR Group Inc.
EMCOR Group stock prices have fluctuated greatly over the last ten years, the lowest closing stock price occurred in February, 2009 at a rate of $15.41, the highest recorded closing for EMCOR stock occurred in October, 2015 at $50.40. (Table 1) EMCOR has been a publically offered stock since 1994, the year they were founded. EMCOR began paying dividends in January of 1997 and experienced its first stock split in February of 2006 and again in July of 2007. (Figure 1)
Stock and Market Risk and Return
EMCOR has in the last ten years had an average return of 14%, which is significantly higher than the average stock return of 6.9% for the S&P 500.The standard deviation for EMCOR was 24.3%, while the S&P 500 was 18.6%. EMCOR’s standard deviation is in line with publicly traded firms which are typically 20% to 30%. (Brigham & Houston, 2016, pp. 267-268) A lower standard of deviation is generally preferred when investments are expected to generate similar returns, as the stock with a lower standard of deviation is thought to be less risky. However, EMCOR’s coefficient of variation was 1.74 compared to the S&P 500 with a coefficient of variation of 2.71 during the same time period. This

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