The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends.Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.) ACDF12 a. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and thencalculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtractingthe beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital5 gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in theindex. Also, you cannot calculate the rate of return for 2015 because you do not have 2014 data.)478Data as given in the problem are shown below:9.Goodman IndustriesLandry IncorporatedMarket Index10YearStock PriceDividendStock PriceDividend Includes Divs.$30.32$2.23$2.65$2.73$2.57$2.23$2.25$85.12$79.32$74.32$87.12$95.12$84.25$3.52$3.65$3.45$3.47$3.55$3.2511202018,475.9712,174.5512,019.9710,743.059,455.428,163.962019$23.53$28.61$15.21$12.63$13.21121320181420171520161620151718 We now calculate the rates of retun for the two companies and the index:1920GoodmanLandryIndex2120202220192320182420172520162627 Average2829 Note: To get the average, you could get the column sum and divide by 5, but you could also use the function30 wizard, fx. Click fx, then statistical, then Average, and then use the mouse to select the proper range. Do this for31 Goodman and then copy the cell for the other items.32 ACEF33 b. Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. (Hint: Use the34 sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.)3536 Use the function wizard to calculate the standard deviations.3738GoodmanLandryIndex39 Standard deviation of returns404142

Given information: The stock prices and dividends of Goodman industries, laundry incorporated and…

Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.)

Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.)

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 8MC: Use the extended DuPont equation to provide a breakdown of Computrons projected return on equity....

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