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(2) Jason is considering investing in Kewpie Travels. The stock's closing prices over the years were as follows: a. Determine the stock annual retum and

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(2) Jason is considering investing in Kewpie Travels. The stock's closing prices over the years were as follows: a. Determine the stock annual retum and average return for the last 10 years. (15 mariks) b. What is the risk of the stock over this period? ( 10 marks) c. Earlier studies showed that the market retums were 12.13% per annum, with a standard deviation of 11.48%. If the correlation coeficient between Kewpie Travels and the market is 1.35, calculate (with explanation) the beta of the i. Market ( 5 mariks) ii. Kewpie Travels ( 10 marks) d. What is the potential range of retums for Kewpie Travels? ( 5 mariks) (2) Jason is considering investing in Kewpie Travels, The stock's closing prices over the years were as follows: a. Determine the stock annual retum and average return for the last 10 years. ( 15 marks) b. What is the risk of the stock over this period? ( 10 marks) c. Earlier studies showed that the market retums were 12.13% per annum, with a standard deviation of 11.48%. If the correlation coefficient between Kewpie Travels and the market is 1.35, calculate (with explanation) the beta of the i. Market ( 5 marks) ii. Kewpie Travels (10 marks) d. What is the potential range of returns for Kewpie Travels? (5 marks) c. Assuming the risk-free rate of retum is 4.25%, what is the expected returns for Kewpie Travels? ( 5 marks) (Total 50 marks)

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