beth week 5

1. How do you think risk should be measured? Explain your reasoning. 2. Explain what is meant by “risk drives expected return”. 3. For Asset A and for Asset B compute the average annual return variance standard deviation and coefficient of variation for the annual returns given below.a. Asset A: 5% 10% 15% 4%b. Asset B: -6% 20% 2% -5% 10% 4. Compute the holding period returns for each security below: Security Price Today Price One Year Ago Dividends Received Interest Received RR $20.05 $18.67 $0.50 WC $33.42 $45.79 $1.10 AC $1015.38 $991.78 $100.00 5. Find the real return nominal after-tax return and real after-tax return for each of the following stocks: Stock Nominal Return Inflation Tax Rate X 13.5% 5% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% 6. In what ways does a proprietorship differ from a partnership? In what ways does a proprietorship differ from a corporation? 7. What information might a changing stock price give to managers? 8. What are agency costs? Give some examples. How might they be measured? Requirements: 250