Question #3 please. I have no idea what they mean by average rate of return...
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Question #3 please. I have no idea what they mean by average rate of return for each group... this is all the information given. HELP
Office Update To keep up-to-date with security updates, fixe E1 x fx A B D E E 1 2 3 P/E Ratio 21.12 19.28 27.74 174.89 116.28 book-to-market ratio 318.99 302.55 37.96 29.34 16.29 4 5 6 7 8 00 9 10 28.49 47.09 22.86 23.26 23.03 15.14 11.23 7.93 6.85 6.73 11 Stocks Market cap HD 330.16 B LOW 150.04 B APPL 2.73 T TSLA 885.70 B SNAP 61.74 B 2 HSY 41.73 B AMZN 1.55 T COKE 5.39 B GOOG 1.72 T HON 124.91 B 3 WMT 382.77 B SAM 4.63 B FB 561.16 B VZ 225.97 B GE 101,90 B 4 CMCSA 211.43 B XOM 327.93 B BRK-B 703.10 B CVX 257.19 B CVS 134.05 B 5 GM 70.62 B T 170.50 B 6.29 B TM 262.48 B GS 115.43 B 28.33 47.52 14.97 10.12 71.57 4.6 4.5 4.49 2.76 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 2.53 15.34 14.35 8.5 16.39 17.16 2.2 2.04 1.49 1.85 1.79 un 7.25 8.65 1.62 9.81 5.82 1.18 1.03 0.7 1.2 1.05 2) Explain why some firms (individual investors) prefer passive investing? Using Yahoo Finance (under Statistics), sort 25 stocks into five groups based on: Book-to-market ratio Price-earnings ratio Market capitalization (size) 3) Calculate and report the average rate of return for each group. Do the findings support any of the well- known market efficiency anomalies? Note: for these tests to be valid, they must be formed based on criteria at the beginning of the period. Why? Office Update To keep up-to-date with security updates, fixe E1 x fx A B D E E 1 2 3 P/E Ratio 21.12 19.28 27.74 174.89 116.28 book-to-market ratio 318.99 302.55 37.96 29.34 16.29 4 5 6 7 8 00 9 10 28.49 47.09 22.86 23.26 23.03 15.14 11.23 7.93 6.85 6.73 11 Stocks Market cap HD 330.16 B LOW 150.04 B APPL 2.73 T TSLA 885.70 B SNAP 61.74 B 2 HSY 41.73 B AMZN 1.55 T COKE 5.39 B GOOG 1.72 T HON 124.91 B 3 WMT 382.77 B SAM 4.63 B FB 561.16 B VZ 225.97 B GE 101,90 B 4 CMCSA 211.43 B XOM 327.93 B BRK-B 703.10 B CVX 257.19 B CVS 134.05 B 5 GM 70.62 B T 170.50 B 6.29 B TM 262.48 B GS 115.43 B 28.33 47.52 14.97 10.12 71.57 4.6 4.5 4.49 2.76 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 2.53 15.34 14.35 8.5 16.39 17.16 2.2 2.04 1.49 1.85 1.79 un 7.25 8.65 1.62 9.81 5.82 1.18 1.03 0.7 1.2 1.05 2) Explain why some firms (individual investors) prefer passive investing? Using Yahoo Finance (under Statistics), sort 25 stocks into five groups based on: Book-to-market ratio Price-earnings ratio Market capitalization (size) 3) Calculate and report the average rate of return for each group. Do the findings support any of the well- known market efficiency anomalies? Note: for these tests to be valid, they must be formed based on criteria at the beginning of the period. Why
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