Previously, the emphasis was on obtaining information from clients. In this chapter, the emphasis was on preparing witnesses for trial. To properly prepare witnesses for trial, the paralegal needs to….
What is the realized risk-return profile of Richky Corp.?
a.Risk-free rate and Sharpe ratio Using the data for the Treasury bond in determine the theoretical risk-free rate rf so that the Sharpe ratio of the T-Bond be equal to 1.
b: Risk and return of Richky Corp. The table below gives the stock price of Richky Corp. at the end of
each month over the past year. The risk-free rate was constant at 5%.
(a) Given a $134 initial stock price at the end of the previous year and a $13 dividend per share distributed on 30 June, calculate the monthly returns of Richky Corp. Assume that the dividend is reinvested in the stock.
(b) What is the realized risk-return profile of Richky Corp.?
(c) You are the Chief Financial Officer of Richky Corp. At a business meeting, Mr David Haffmann, the Production Manager, proposes a project which would reduce annual production costs by $1.2 per share on average with a standard deviation of $0.6 per share. Do you approve this project? There are several possible answers to this question.