The following information relates to the prices and dividends of two stocks listed on the Ghana Stock Exchange as well as the average market returns. Stock A Stock B Year Price Div Price Div Market Returns 2011 20 0 11 0 0 2012 24 1.2 13 1.6 0.25 2013 26 0.5 17 0.5 0.18 2014 31 1 20 0.9 0.11 2015 33 1.5 23 1.2 0.12 2016 40 2 27 1.5 0.15 Required. 1. Using the market returns, calculate the beta of each of the stocks.
The following information relates to the prices and dividends of two stocks listed on the Ghana Stock Exchange as well as the average market returns. Stock A Stock B Year Price Div Price Div Market Returns 2011 20 0 11 0 0 2012 24 1.2 13 1.6 0.25 2013 26 0.5 17 0.5 0.18 2014 31 1 20 0.9 0.11 2015 33 1.5 23 1.2 0.12 2016 40 2 27 1.5 0.15 Required. 1. Using the market returns, calculate the beta of each of the stocks.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
Related questions
Question
The following information relates to the prices and dividends of two stocks listed on the Ghana Stock Exchange as well as the average market returns.
|
|
Stock A |
Stock B |
|
||
|
Year |
Price |
Div |
Price |
Div |
Market Returns |
|
2011 |
20 |
0 |
11 |
0 |
0 |
|
2012 |
24 |
1.2 |
13 |
1.6 |
0.25 |
|
2013 |
26 |
0.5 |
17 |
0.5 |
0.18 |
|
2014 |
31 |
1 |
20 |
0.9 |
0.11 |
|
2015 |
33 |
1.5 |
23 |
1.2 |
0.12 |
|
2016 |
40 |
2 |
27 |
1.5 |
0.15 |
Required.
1. Using the market returns, calculate the beta of each of the stocks.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781285065137
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781285065137
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning