This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: You have been scouring The Wall Street Journal looking for stocks to add to your (large) portfolio. ... (Read 42 times)

karlynnae

  • Hero Member
  • *****
  • Posts: 599
on: Jul 10, 2018
You have been scouring The Wall Street Journal looking for stocks to add to your (large) portfolio. The table presents data that you have collected on four stocks that look promising.
 
  You have calculated the return that you anticipate earning from each stock along with its beta. Which of the four securities should you add to your portfolio? (Assume you must choose just one.) Assume the risk-free rate is 7.00 and the market risk premium is 2.00.
 
  Stock Anticipated Return Beta
  A 9.01 1.70
  B 7.06 0.00
  C 8.74 0.87
  D 11.50 2.50
 
  A) Stock A
  B) Stock B
  C) Stock C
  D) Stock D

Question 2

The price/earnings ratio:
 
  A) Is calculated by multiplying the market price of a stock by its earnings per share.
  B) Is found by dividing the market price of a stock by the firm's total earnings.
  C) Is computed by dividing the book value of a stock by the firm's EPS.
  D) Is calculated by adding the market price of a stock to the firm's EPS.
  E) Is found by dividing the market price of a stock by the firm's EPS.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dawsa925

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

E


karlynnae

  • Member
  • Posts: 599
Reply 2 on: Jul 10, 2018
:D TYSM

nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Large male reindeer Large male reindeer
Mechanism of penicillin: (a) Bacterial cell wall strengthened by peptide cross-links. (b) Penicillin ... Mechanism of penicillin: (a) Bacterial cell wall strengthened by peptide cross-links. (b) Penicillin ...
The Eye and the Eye Wall—a Closer Look The Eye and the Eye Wall—a Closer Look
The cell wall of a Gram-positive bacterium, S. aureus The cell wall of a Gram-positive bacterium, S. aureus
The cell wall of a Gram-negative bacterium, E. coli The cell wall of a Gram-negative bacterium, E. coli
Dry outgrowths of the ovary wall of a maple (Acer) fruit form “wings” that catch the wind and ... Dry outgrowths of the ovary wall of a maple (Acer) fruit form “wings” that catch the wind and ...
Video: Hershey Chase Experiments

For a complete list of videos, visit our video library