Individual Course work 2, business and finance homework help

Don't use plagiarized sources. Get Your Custom Essay on
Need an answer from similar question? You have just landed to the most confidential, trustful essay writing service to order the paper from.
Just from $13/Page
Order Now

The Allied Group has acquired Kramer Industries and is now considering additional investments. They have determined that there is a firm that is a good fit for their portfolio, the Kramer firm of Montana. The firm was established in 1990 and has the following historical returns:

Kramer Industries
Year Earnings

1990

(8% Loss)

1995

23%

2000

26%

2005

31%

2010

18%

Questions: Address all of the following questions in a brief but thorough manner.

  • What was the average return for the stock over the period of 1990 through 2010?
  • What was the standard deviation for the stock over this period?
  • Justified whether or not the company should be purchased
  • Assume that you currently have a portfolio that returns 19.5%. If you add this stock to the current portfolio, what would happen to the average return on the portfolio?
  • Correctly identified the result of adding Kramer to your existing portfolio.
  • Should Allied invest in the stock? Justify your response.