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The analysis of risk and the search for performance in companies is decisive for financial success. In this case, consider the share price and dividends

The analysis of risk and the search for performance in companies is decisive for financial success. In this case, consider the share price and dividends of the companies Power Electric Industries, Riviera Power Inc. and Nature Energy Corp. for the period from 2014 to 2019.

 Power Electric IndustriesRiviera Power Inc.Nature Energy Corp.   
Yearshare price / Dividendsshare price / Dividendsshare price / Dividends   
2019$18.5          / $1.50$38.5          / $4.50$58.5          / $3.50   
2018$15.93       / $1.10$40.93       / $3.10$50.93       / $2.10   
2017$10.20      / $1.00$43.20      / $3.00$53.20      /  $3.00   
2016$9.80       / $0.90$50.80     /  $2.90$50.80      /  $2.90   
2015$8.50      / $0.85$48.50     /  $2.85$48.50      /  $2.75   
2014$8.00     / $0.80$45.00     /  $2.80$45.00     /  $2.60   


a. Consider company data to calculate annual rates of return. Determine the average return for each figure over the 5-year period. (It will not be possible to calculate the rate of return for 2014, because there is no data for 2013).
b. Calculate the standard deviation from the yields of Power Electric Industries, Riviera Power Inc. and Nature Energy Corp. The function of the Microsoft Excel application (STDEV) can be used.
c. Calculate the variation coefficients of the companies.
d. Determine the firms' Sharpe ratios from the average returns and a risk-free rate of 4%.
and. A scatterplot showing the returns of Power Electric Industries and Rviera Power Inc. on the vertical axis and the returns of Nature Energy Corp. on the horizontal axis.
F. Calculate the percentage volatility (betas) of the companies Power Electric Industries and Riviera Power Inc. by making regressions from the returns. Compare the results with those reflected in the graph of the question.
g. Determine the percentage of volatility (beta) and the performance of a portfolio made up of 40% of Power Electric Industries and 30% of Riviera Power Inc. and Nature Energy Corp., respectively.

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