The organizations are Dell, Ford, UPS, Disney, and Proctor & Gamble. I just need help with part 3 and 4.

1. Determine the five-year average return for each security.
2. Identify the securitiesâ?? industries.
3. Determine the average five-year average return in each industry.
4. Identify three additional stocks in each industry and determine the five-year average return for each.
5. Compare your securitiesâ?? performance to those in the same industry and industry average.
6. Determine whether or not changes must be made to your portfolio.
7. Attach supporting Microsoft Excel tables and graphs to your paper. Spreadsheets must detail all calculations.

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The organizations are Dell, Ford, UPS, Disney, and Proctor & Gamble. I just need help with part 3 and 4.

1. Determine the five-year average return for each security.
2. Identify the securitiesâ?? industries.
3. Determine the average five-year average return in each industry.
4. Identify three additional stocks in each industry and determine the five-year average return for each.
5. Compare your securitiesâ?? performance to those in the same industry and industry average.
6. Determine whether or not changes must be ...

Solution Summary

Response helps in calculating five-year average return for each security

Suppose the security I and security J have the following historical returns:
Year kI kJ
2001 20% 40%
2002 29 36
2003 -12 -25
1. What is the (arithmetic) averagereturn on security I?
2. What is the standard deviation of the return on security I? (U

The following pattern for one-year Treasury bills is expected over the next four years:
Year1, 3%
Year2, 5%
Year3, 6%
Year4, 7%
a. What return would be necessary to induce an investor to buy a two-year security?
b. What return would be necessary to induce an investor to buy a three-year security?
c. What return would be n

My real risk-free rate is 3.50%, average future inflation rate is 2.25%, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the years to maturity.
What is the rate of return I should expect on a 5-year Treasury security, assuming the pure expectations theory is not valid?
No

Suppose a particular investment earns a return of 10% in year 1, -5% (note MINUS 5%) in year 2, and 30% in year 3. Calculate the geometric averagereturnfor the 3-year period (Avg annual return).

Spill Oil Company's stocks had -8%, 11% and 24% rates of return during the last three years respectively; calculate the average rate of returnfor the stock.
A. 8% per year
B. 9% per year
C. 11% per year
D. None of the above

Using this formula..
r=(S/P)^1/n - 1
An investment of $10,000 in the Emerging Country Debt Fund in 2001 was worth $24,780 in 2006 (www.money.com). Use the formula above to find the 5 year average annual return.
r equals S over P to the power of 1/n minus 1

Carter, Inc., is evaluating a security. One-year Treasury bills are currently paying 9.1 percent.
Calculate the investment's expected return and its standard deviation.
Should Carter invest in this security?
PROBABILITY RETURN
.15 6%
.30 9%
.4

General Electric : Relative performance analysis
1. the five-yearaveragereturn.
2. Determine the averagefive-yearaveragereturn in your industry
3. Identify three additional stocks in each industry and determine their five year averagereturn.
4. Compare your selected security performance to those in the

Security F has an expected return of 12% and a standard deviation of 9% per year. Security G has an expected return of 18% and a standard deviation of 25% per year. A portfolio is composed of 30% of Security F and 70% of Security G? If the correlation coefficient between the returns of F and G is 0.2, what is the standard deviat

See attached file.
24. What is the averagereturn of a portfolio that has 10% invested in stock A, 40% invested in stock B and 50% invested in stock C?
Year Return
Stock A Stock B Stock C
1 15% 12% 5%
2 25% 14% -6%
3