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 %
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