# Assignment-1 Finance 550, Fall 2010

Apr 30th, 2015
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1. a. A.M. stock A = 0.09 + 0.05 + (-0.06) + 0.04 + 0.06 / 5 = 0.036 = 3.6% A.M. stock B = 0.2 + 0.1 + (-0.13) + (-0.04) + 0.16 / 5 = 0.058 = 5.8% According to the arithmetic mean, a higher return on Stock B seems to me most desirable, so these results lead us to prefer Stock B. b. Standard Deviation stock A = 0.056833089 = 5.68% Standard Deviation stock B = 0,138996403 = 13.90% Standard Deviation shows that Stock A would be preferred instead of Stock B. c. Coefficient of Variation stock A = 1,578696915 Coefficient of Variation stock B = 2,396489704 In these results we can say that Stock B should be chosen. d. G.M. stock A = 0.034 = 3.4% G.M. stock B = 0.05 = 5% The geometric mean to direct us to prefer Stock B

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Solving the QuestionsBasic Measures, Policy Statement, andSecurities Market Strayer UniversityDr. Bliss : Finance 550, Fall 2010Mehmet F. Celik70157910911. a. A.M. stock A = 0.09 + 0.05 + (-0.06) + 0.04 + 0.06 / 5 = 0.036 = 3.6%A.M. stock B = 0.2 + 0.1 + (-0.13) + (-0.04) + 0.16 / 5 = 0.058 = 5.8% According to the arithmetic mean, a higher return on Stock B seems to me most desirable, so these results lead us to prefer Stock B. b. Standard Deviation stock A = 0.056833089 = 5.68%Standard Deviation stock B = 0,138996403 = 13.90%Standard Deviation shows that Stock A would be preferred instead of Stock B.c. Coefficient of Variation stock A = 1,578696915 Coefficient of Variation stock B = 2,396489704In these results we can say that Stock B should be chosen.d.G.M. stock A = 0.034 = 3.4%G.M. stock B = 0.05 = 5%The geometric mean to direct us to prefer Stock B2.ObjectiveMr. Lewis 60 years old and in the near time he lost his wife since she had a disease that killed her. But, he believes that a cure can be found for that disease, therefore he has decided that a medical research foundation will receive half the proceeds now and will be the primary beneficiary of his estate upon his death. He has no children and is in excellent health, he is regular person, and however, he keeps dynamic lifestyle. ConstraintsLiquidity needs: I always defend one thesis tha

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