Week 1 Project-Kramer Industries

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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%

Address all of the following questions:

  • 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?
  • 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?
  • Should Allied invest in the stock? Justify your response.

**Tutor this assignment needs to be 3-4 Pages in APA format with 100% original no plagarism***

  • 5 years ago
  • 15
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