week 1

 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: 

 ( look at the attachment to see chart)

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 will happen to the average return on the portfolio?
  • Should Allied invest in the stock? Justify your response.

Submission Details:

  • Submit your 2- to 3-page paper in a Microsoft Word document, using APA style.

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