Virtual university Of Pakistan

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 %