SlideShare a Scribd company logo
1 of 2
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
18%
Questions: Address all of the following questions in a brief but
thorough manner.
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 would
happen to the average return on the portfolio?
Should Allied invest in the stock? Justify your response.
The Allied Group has acquired Kramer Industries and is now conside.docx

More Related Content

Similar to The Allied Group has acquired Kramer Industries and is now conside.docx

Accounting Tools for Business Decision MakingSixth EditionK.docx
Accounting Tools for Business Decision MakingSixth EditionK.docxAccounting Tools for Business Decision MakingSixth EditionK.docx
Accounting Tools for Business Decision MakingSixth EditionK.docx
katherncarlyle
 
Company Stock Analysis And Equity Research Report PowerPoint Presentation Slides
Company Stock Analysis And Equity Research Report PowerPoint Presentation SlidesCompany Stock Analysis And Equity Research Report PowerPoint Presentation Slides
Company Stock Analysis And Equity Research Report PowerPoint Presentation Slides
SlideTeam
 
General motors
General motorsGeneral motors
General motors
motaque
 
Mgt 521 week 4
Mgt 521 week 4Mgt 521 week 4
Mgt 521 week 4
ptlinda91
 
Do Mergers Create Value - Analyzing Daimler Chrysler
Do Mergers Create Value - Analyzing Daimler Chrysler Do Mergers Create Value - Analyzing Daimler Chrysler
Do Mergers Create Value - Analyzing Daimler Chrysler
vivekmsk29
 

Similar to The Allied Group has acquired Kramer Industries and is now conside.docx (14)

Accounting Tools for Business Decision MakingSixth EditionK.docx
Accounting Tools for Business Decision MakingSixth EditionK.docxAccounting Tools for Business Decision MakingSixth EditionK.docx
Accounting Tools for Business Decision MakingSixth EditionK.docx
 
CFA Challenge 2018
CFA Challenge 2018CFA Challenge 2018
CFA Challenge 2018
 
CFA Research Challenge 2018
CFA Research Challenge 2018CFA Research Challenge 2018
CFA Research Challenge 2018
 
The emperor's new cloth earley
The emperor's new cloth   earleyThe emperor's new cloth   earley
The emperor's new cloth earley
 
Company Stock Analysis And Equity Research Report PowerPoint Presentation Slides
Company Stock Analysis And Equity Research Report PowerPoint Presentation SlidesCompany Stock Analysis And Equity Research Report PowerPoint Presentation Slides
Company Stock Analysis And Equity Research Report PowerPoint Presentation Slides
 
General motors
General motorsGeneral motors
General motors
 
InsurTech 2.0: How You Can Win
InsurTech 2.0: How You Can WinInsurTech 2.0: How You Can Win
InsurTech 2.0: How You Can Win
 
Mgt 521 week 4
Mgt 521 week 4Mgt 521 week 4
Mgt 521 week 4
 
Proposal Topic slides(Muhammad Jamil 123876).ppt
Proposal Topic slides(Muhammad Jamil 123876).pptProposal Topic slides(Muhammad Jamil 123876).ppt
Proposal Topic slides(Muhammad Jamil 123876).ppt
 
half-year-results-2022-slides.pdf
half-year-results-2022-slides.pdfhalf-year-results-2022-slides.pdf
half-year-results-2022-slides.pdf
 
Confessions of Capital Junkie
Confessions of Capital JunkieConfessions of Capital Junkie
Confessions of Capital Junkie
 
India Auto Ancillary Valuation Trends - Nov 2020
India Auto Ancillary Valuation Trends  - Nov 2020 India Auto Ancillary Valuation Trends  - Nov 2020
India Auto Ancillary Valuation Trends - Nov 2020
 
Do Mergers Create Value - Analyzing Daimler Chrysler
Do Mergers Create Value - Analyzing Daimler Chrysler Do Mergers Create Value - Analyzing Daimler Chrysler
Do Mergers Create Value - Analyzing Daimler Chrysler
 
EDC's Trade Confidence Index 2018 year-end results
EDC's Trade Confidence Index 2018 year-end resultsEDC's Trade Confidence Index 2018 year-end results
EDC's Trade Confidence Index 2018 year-end results
 

More from johniemcm5zt

Student answer  The French and the German were a bit different w.docx
Student answer  The French and the German were a bit different w.docxStudent answer  The French and the German were a bit different w.docx
Student answer  The French and the German were a bit different w.docx
johniemcm5zt
 
Student Answer and Work Form Unit 4 Ver. AStudent Name (required.docx
Student Answer and Work Form Unit 4 Ver. AStudent Name (required.docxStudent Answer and Work Form Unit 4 Ver. AStudent Name (required.docx
Student Answer and Work Form Unit 4 Ver. AStudent Name (required.docx
johniemcm5zt
 
Student 1 Random Student Mrs. Wilson Expository W.docx
Student 1 Random Student  Mrs. Wilson Expository W.docxStudent 1 Random Student  Mrs. Wilson Expository W.docx
Student 1 Random Student Mrs. Wilson Expository W.docx
johniemcm5zt
 
Student Answer and Work Form Unit 3 Ver. CStudent Name ________.docx
Student Answer and Work Form Unit 3 Ver. CStudent Name ________.docxStudent Answer and Work Form Unit 3 Ver. CStudent Name ________.docx
Student Answer and Work Form Unit 3 Ver. CStudent Name ________.docx
johniemcm5zt
 
Student answer A. (1) Use Mancur Olsons theory to explain the b.docx
Student answer A. (1) Use Mancur Olsons theory to explain the b.docxStudent answer A. (1) Use Mancur Olsons theory to explain the b.docx
Student answer A. (1) Use Mancur Olsons theory to explain the b.docx
johniemcm5zt
 
Student 1StudentProfessor ENG 10827 June 2014Instruments.docx
Student 1StudentProfessor ENG 10827 June 2014Instruments.docxStudent 1StudentProfessor ENG 10827 June 2014Instruments.docx
Student 1StudentProfessor ENG 10827 June 2014Instruments.docx
johniemcm5zt
 
Student Project There is no extension of the due date for t.docx
Student  Project   There is no extension of the due date for t.docxStudent  Project   There is no extension of the due date for t.docx
Student Project There is no extension of the due date for t.docx
johniemcm5zt
 
Studding abroad has become a major priority to for the higher educ.docx
Studding abroad has become a major priority to for the higher educ.docxStudding abroad has become a major priority to for the higher educ.docx
Studding abroad has become a major priority to for the higher educ.docx
johniemcm5zt
 
Student 1Student ENG 11008 March 2015The King of Equalit.docx
Student 1Student ENG 11008 March 2015The King of Equalit.docxStudent 1Student ENG 11008 March 2015The King of Equalit.docx
Student 1Student ENG 11008 March 2015The King of Equalit.docx
johniemcm5zt
 
Structure!Thesis British politics were changed in such a fa.docx
Structure!Thesis British politics were changed in such a fa.docxStructure!Thesis British politics were changed in such a fa.docx
Structure!Thesis British politics were changed in such a fa.docx
johniemcm5zt
 
Student #1 I have chosen to write about the history of data anal.docx
Student #1 I have chosen to write about the history of data anal.docxStudent #1 I have chosen to write about the history of data anal.docx
Student #1 I have chosen to write about the history of data anal.docx
johniemcm5zt
 
Student answer (a) In US business unionism focuses on benefits t.docx
Student answer (a) In US business unionism focuses on benefits t.docxStudent answer (a) In US business unionism focuses on benefits t.docx
Student answer (a) In US business unionism focuses on benefits t.docx
johniemcm5zt
 
Structured Query Language for Data Management 2 Sructu.docx
Structured Query Language for Data Management      2 Sructu.docxStructured Query Language for Data Management      2 Sructu.docx
Structured Query Language for Data Management 2 Sructu.docx
johniemcm5zt
 
strictman-lPer-)nger,n Ofracedrhfiess the.docx
strictman-lPer-)nger,n Ofracedrhfiess the.docxstrictman-lPer-)nger,n Ofracedrhfiess the.docx
strictman-lPer-)nger,n Ofracedrhfiess the.docx
johniemcm5zt
 
STRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docx
STRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docxSTRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docx
STRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docx
johniemcm5zt
 
Strengths Insight and Action-Planning GuideSURVEY COMPLETION.docx
Strengths Insight and Action-Planning GuideSURVEY COMPLETION.docxStrengths Insight and Action-Planning GuideSURVEY COMPLETION.docx
Strengths Insight and Action-Planning GuideSURVEY COMPLETION.docx
johniemcm5zt
 
Strengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docx
Strengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docxStrengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docx
Strengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docx
johniemcm5zt
 
Strategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docx
Strategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docxStrategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docx
Strategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docx
johniemcm5zt
 
STRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docx
STRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docxSTRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docx
STRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docx
johniemcm5zt
 

More from johniemcm5zt (20)

Student answer  The French and the German were a bit different w.docx
Student answer  The French and the German were a bit different w.docxStudent answer  The French and the German were a bit different w.docx
Student answer  The French and the German were a bit different w.docx
 
Student Answer and Work Form Unit 4 Ver. AStudent Name (required.docx
Student Answer and Work Form Unit 4 Ver. AStudent Name (required.docxStudent Answer and Work Form Unit 4 Ver. AStudent Name (required.docx
Student Answer and Work Form Unit 4 Ver. AStudent Name (required.docx
 
Student 1 Random Student Mrs. Wilson Expository W.docx
Student 1 Random Student  Mrs. Wilson Expository W.docxStudent 1 Random Student  Mrs. Wilson Expository W.docx
Student 1 Random Student Mrs. Wilson Expository W.docx
 
Student Answer and Work Form Unit 3 Ver. CStudent Name ________.docx
Student Answer and Work Form Unit 3 Ver. CStudent Name ________.docxStudent Answer and Work Form Unit 3 Ver. CStudent Name ________.docx
Student Answer and Work Form Unit 3 Ver. CStudent Name ________.docx
 
Student answer A. (1) Use Mancur Olsons theory to explain the b.docx
Student answer A. (1) Use Mancur Olsons theory to explain the b.docxStudent answer A. (1) Use Mancur Olsons theory to explain the b.docx
Student answer A. (1) Use Mancur Olsons theory to explain the b.docx
 
Student 1StudentProfessor ENG 10827 June 2014Instruments.docx
Student 1StudentProfessor ENG 10827 June 2014Instruments.docxStudent 1StudentProfessor ENG 10827 June 2014Instruments.docx
Student 1StudentProfessor ENG 10827 June 2014Instruments.docx
 
Student Project There is no extension of the due date for t.docx
Student  Project   There is no extension of the due date for t.docxStudent  Project   There is no extension of the due date for t.docx
Student Project There is no extension of the due date for t.docx
 
Studding abroad has become a major priority to for the higher educ.docx
Studding abroad has become a major priority to for the higher educ.docxStudding abroad has become a major priority to for the higher educ.docx
Studding abroad has become a major priority to for the higher educ.docx
 
Student 1Student ENG 11008 March 2015The King of Equalit.docx
Student 1Student ENG 11008 March 2015The King of Equalit.docxStudent 1Student ENG 11008 March 2015The King of Equalit.docx
Student 1Student ENG 11008 March 2015The King of Equalit.docx
 
Studcnft Cl.nthiaEdnads fnrtructor HilaryCla Assignmenf W2H.docx
Studcnft Cl.nthiaEdnads fnrtructor HilaryCla Assignmenf W2H.docxStudcnft Cl.nthiaEdnads fnrtructor HilaryCla Assignmenf W2H.docx
Studcnft Cl.nthiaEdnads fnrtructor HilaryCla Assignmenf W2H.docx
 
Structure!Thesis British politics were changed in such a fa.docx
Structure!Thesis British politics were changed in such a fa.docxStructure!Thesis British politics were changed in such a fa.docx
Structure!Thesis British politics were changed in such a fa.docx
 
Student #1 I have chosen to write about the history of data anal.docx
Student #1 I have chosen to write about the history of data anal.docxStudent #1 I have chosen to write about the history of data anal.docx
Student #1 I have chosen to write about the history of data anal.docx
 
Student answer (a) In US business unionism focuses on benefits t.docx
Student answer (a) In US business unionism focuses on benefits t.docxStudent answer (a) In US business unionism focuses on benefits t.docx
Student answer (a) In US business unionism focuses on benefits t.docx
 
Structured Query Language for Data Management 2 Sructu.docx
Structured Query Language for Data Management      2 Sructu.docxStructured Query Language for Data Management      2 Sructu.docx
Structured Query Language for Data Management 2 Sructu.docx
 
strictman-lPer-)nger,n Ofracedrhfiess the.docx
strictman-lPer-)nger,n Ofracedrhfiess the.docxstrictman-lPer-)nger,n Ofracedrhfiess the.docx
strictman-lPer-)nger,n Ofracedrhfiess the.docx
 
STRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docx
STRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docxSTRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docx
STRIKING A BALANCE BETWEEN PUBLIC INTEREST OFTRANSPARENCY OF.docx
 
Strengths Insight and Action-Planning GuideSURVEY COMPLETION.docx
Strengths Insight and Action-Planning GuideSURVEY COMPLETION.docxStrengths Insight and Action-Planning GuideSURVEY COMPLETION.docx
Strengths Insight and Action-Planning GuideSURVEY COMPLETION.docx
 
Strengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docx
Strengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docxStrengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docx
Strengths Insight and Action-Planning Guide SURVEY COMPLETION DA.docx
 
Strategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docx
Strategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docxStrategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docx
Strategy Project.DS_Store__MACOSXStrategy Project._.DS_St.docx
 
STRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docx
STRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docxSTRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docx
STRAYER BUS475 WEEK 10 QUIZ 10Report this Question as Inappropri.docx
 

Recently uploaded

Poster_density_driven_with_fracture_MLMC.pdf
Poster_density_driven_with_fracture_MLMC.pdfPoster_density_driven_with_fracture_MLMC.pdf
Poster_density_driven_with_fracture_MLMC.pdf
Alexander Litvinenko
 
SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project research
CaitlinCummins3
 

Recently uploaded (20)

Envelope of Discrepancy in Orthodontics: Enhancing Precision in Treatment
 Envelope of Discrepancy in Orthodontics: Enhancing Precision in Treatment Envelope of Discrepancy in Orthodontics: Enhancing Precision in Treatment
Envelope of Discrepancy in Orthodontics: Enhancing Precision in Treatment
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...
 
demyelinated disorder: multiple sclerosis.pptx
demyelinated disorder: multiple sclerosis.pptxdemyelinated disorder: multiple sclerosis.pptx
demyelinated disorder: multiple sclerosis.pptx
 
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjjStl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
 
Word Stress rules esl .pptx
Word Stress rules esl               .pptxWord Stress rules esl               .pptx
Word Stress rules esl .pptx
 
PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptx
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
 
The Liver & Gallbladder (Anatomy & Physiology).pptx
The Liver &  Gallbladder (Anatomy & Physiology).pptxThe Liver &  Gallbladder (Anatomy & Physiology).pptx
The Liver & Gallbladder (Anatomy & Physiology).pptx
 
Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...
Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...
Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...
 
Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).
 
Benefits and Challenges of OER by Shweta Babel.pptx
Benefits and Challenges of OER by Shweta Babel.pptxBenefits and Challenges of OER by Shweta Babel.pptx
Benefits and Challenges of OER by Shweta Babel.pptx
 
Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45
Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45
Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45
 
“O BEIJO” EM ARTE .
“O BEIJO” EM ARTE                       .“O BEIJO” EM ARTE                       .
“O BEIJO” EM ARTE .
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
 
The Ball Poem- John Berryman_20240518_001617_0000.pptx
The Ball Poem- John Berryman_20240518_001617_0000.pptxThe Ball Poem- John Berryman_20240518_001617_0000.pptx
The Ball Poem- John Berryman_20240518_001617_0000.pptx
 
Chapter 7 Pharmacosy Traditional System of Medicine & Ayurvedic Preparations ...
Chapter 7 Pharmacosy Traditional System of Medicine & Ayurvedic Preparations ...Chapter 7 Pharmacosy Traditional System of Medicine & Ayurvedic Preparations ...
Chapter 7 Pharmacosy Traditional System of Medicine & Ayurvedic Preparations ...
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17
 
Poster_density_driven_with_fracture_MLMC.pdf
Poster_density_driven_with_fracture_MLMC.pdfPoster_density_driven_with_fracture_MLMC.pdf
Poster_density_driven_with_fracture_MLMC.pdf
 
SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project research
 
Improved Approval Flow in Odoo 17 Studio App
Improved Approval Flow in Odoo 17 Studio AppImproved Approval Flow in Odoo 17 Studio App
Improved Approval Flow in Odoo 17 Studio App
 

The Allied Group has acquired Kramer Industries and is now conside.docx

  • 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: Kramer Industries Year Earnings 1990 (8% Loss) 1995 23% 2000 26% 2005 31% 2010 18% Questions: Address all of the following questions in a brief but thorough manner. 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 would happen to the average return on the portfolio? Should Allied invest in the stock? Justify your response.