Did the analysts prediction prove correct? Explain using the values for total annual return. Four analysts cover the stock of FLW Chemical. One forecasts a 5% return for the coming year.

Financial Analysis Problem Set Complete the following problems: An analyst predicted last year that the stock of LW, Inc. would offer a total return of at least 10% in the coming year. At the beginning of the year, the firm had a stock market value of $10 million. At the end of the year, it had a market value of $12 million even though it experienced a loss, or negative net income, of $2.5 million. The second expects the return to be negative 5%. The third predicts a 10% return. The fourth expects a 3% return in the coming year. You are relatively confident that the return will be positive but not large, so you arbitrarily assign probabilities of being correct of 35%, 5%, 20%, and 40%, respectively, to the analysts forecasts. Given these probabilities, what is FLW Chemicals expected return for the coming year? The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard deviation of the first investments return is 10%; the second investments return has a standard deviation of 5%. Which investment is less risky based solely on standard deviation? Which investment is less risky based on coefficient of variation? Which is a better measure given that the expected returns of the two investments are not the same? Your portfolio has three asset classes. U.S. government T-bills account for 45% of the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills, 12.3% for the large-company stocks, and 17.4% for the small-company stocks, what is the expected return of the portfolio? Requirements: Submit your response in a Word document, showing all your calculations. Use terms, evidence, and concepts from class readings.

Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.