This assignment will be submitted to Turnitin®.
Instructions:
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 – Essay Writing Service: Write My Essay by Top-Notch Writer 18%
Address all of the following questions:
What was the average return for the stock over the period of 1990 through 2010 – Essay Writing Service: Write My Essay by Top-Notch Writer?
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.
Submission Details:
Submit your 3 to 4 page paper in a Microsoft Word document, using APA style.
Name your document MBA5009_W1_LastName_FirstName.doc.
