4:097 | LTE |
The table below contains the Return on Assets (ROA) and the growth in sales for two
publicly traded hospitality firms - one restaurant and the other a hotel. Compute the
means and standard deviations of the ROA and sales growth. Based on the volatility of
the ROA and growth rate, identify which of the firms is the hotel and which one is the
restaurant. Justify your choice.
Date
Firm A
Firm B
ROA
Sales Growth
ROA
Sales Growth
12/31/2019
5%
1%
13%
0%
12/31/2018
8%
.994
18%
-8%
12/31/2017
6%
34%
15%
-7%
12/31/2016
3%
18%
15%
-3%
12/31/2015
14%
5%
12%
-7%
12/31/2014
11%
8%
14%
-2%
12/31/2013
9%
8%
15%
2%
12/28/2012
9%
.4%
15%
2%
12/30/2011
3%
5%
17%
12%
12/31/2010
7%
15%
6%