MGT201 Assigment 2016

MGT201

ASSIGNMENT # 1

DUE DATE: 18TH JULY, 2016

1. Based upon above information, calculate total return, average return and standard

deviation of Company A’s stock. (6 marks)

Solution:

Total Return = 16.85 %

Avg. Return = 3.37 %

St. dev = 5.94 %

2. Based upon above information, calculate expected return and standard deviation of

Company B’s stock. (3 marks)

Solution:

Expected Return = 4.95 %

Std. Dev = 6.9 %

3. Using co-efficient of variation as a risk measure, determine which one of the following

two stocks is more risky? (1 marks)

Solution:

A. Company A’s stock

Solution:

C.V of A = 1.76 %

B. Company B’s stock

Solution:

C.V of B = 1.39 %