FIN 402 Week 2 Assignment Case Problem 5.2 Susan Lussier’ s Inherited Portfolio Does It Meet Her Needs
the average HPR over the past 10 years for each of the stocks. The historical dividend income and stock price data collected by Molly are given in the accompanying table. Questions
a. Determine the HPR for each stock in each of the preceding 10 years. Find the expected return for each stock, using the approach specified by Molly. b. Use the HPRs and expected return calculated in question a to find the standard deviation of the HPRs for each stock over the 10-year period. c. Use your findings to evaluate and discuss the return and risk associated with stocks X and Y. Which stock seems preferable? Explain. d. Ignoring her existing portfolio, what recommendations would you give Molly with regard to stocks X and Y? e. ============================================
FIN 402 Week 2 Assignment Case Problem 5.2 Susan Lussier’ s Inherited Portfolio Does It Meet Her Needs
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Case Problem 5.2 Susan Lussier’ s Inherited Portfolio: Does It Meet Her Needs? Susan Lussier is 35 years old and employed as a tax accountant for a major oil and gas exploration company. She earns nearly $ 135,000 a year from her salary and from participation in the company’ s drilling