1. Following are recent returns on Google and on Coca-Cola. Year Google Coca-Cola 2017 121.67% 29.27% 2016 -16.31% 26.35% 2015 6.46% 2.24% 2014 -15.83% 13.93% 2013 178.56% 21.94% Required: a) Compute the historical return and standard deviation for each company b) Compute Coefficient of variation for both stocks To solve (c-e), assume a portfolio of $60,000 invested in these two stocks: with $24,000 invested in Google and $36,000 invested in Coca-Cola. c) Compute the portfolio return earned in each year

1. Following are recent returns on Google and on Coca-Cola. Year Google Coca-Cola 2017 121.67% 29.27% 2016 -16.31% 26.35% 2015 6.46% 2.24% 2014 -15.83% 13.93% 2013 178.56% 21.94% Required: a) Compute the historical return and standard deviation for each company b) Compute Coefficient of variation for both stocks To solve (c-e), assume a portfolio of $60,000 invested in these two stocks: with $24,000 invested in Google and $36,000 invested in Coca-Cola. c) Compute the portfolio return earned in each year

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter14: Valuation: Market-based Approach

Section: Chapter Questions

Problem 1KIC

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