top of page
Search
• BAE

# Estimate the risk of each company based on your five-year historical sample of returns

Calculate the Holding Period Return for each company for each year from 30th June 2010 to 30th June 2015. 2.Estimate the Expected Return of each company based on your five-year historical sample of returns. 3.Estimate the risk of each company based on your five-year historical sample of returns. 1.What is the contribution margin? 2.How many cupcakes must Jane sell in a year in order to break even? 3.If you can sell all the cakes the baker can produce in an eight-hour shift (144 cupcakes) each day for 252 days of the year, what will be the annual pre-tax profit before tax? 4.If you increase your average selling price to \$3.70, which has the effect of reducing the amount you are able to sell from 144 per day to 134 per day, what will be your annual pre-tax profit or loss? 5.If you reduce the selling price to \$2.70 and employ an extra baker (producing at the same rate per 8-hour shift) in order to cater for the extra demand at the lower price, and if you wish to earn a pre-tax profit of \$10,000 per annum, how many would you need to sell per year?