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a . What is the average monthly return for the stock since its IPO? The annualized rate of return? b . What is the annualized
a What is the average monthly return for the stock since its IPO? The annualized rate of return?
b What is the annualized standard deviation since the IPO?
c What is the correlation of the stock price with the stock market?
d What is the Sharpe ratio for the stock?
e Develop a scatterplot of DPLs stock price and the market portfolio place DPL on the yaxis Do you see a pattern?
f What is the beta of DPLs stock price? What does this suggest in terms of risk?
g If you owned the stock, would you expect a higher return than the stock market? Why or why not?
h Is the S&P the appropriate benchmark for this stock? If not, which do you recommend?
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