Accounting : Need help with this assignment
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
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
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.