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Calculate the discretely compounded annual returns and the respective risk for both firms. Analyse your answer. Calculate the continuously compounded annual returns and the respective

  1. Calculate the discretely compounded annual returns and the respective risk for both firms.

    Analyse your answer.

  2. Calculate the continuously compounded annual returns and the respective risk for both firms.

    Which is the better investment of the two? Analyse your answer.

Maybank Banking Petronas company
Year share price dividends each year share price dividends each year
2010 8.5 0.55 11.1 0.5
2011 8.7 0.96 11.18 0.5
2012 8.2 0.65 15.56 0.4
2013 8.88 0.535 18.56 0.5
2014 9.63 0.57 23.38 0.8
2015 8.72 0.54 22.2 0.6
2016 8.58 0.52 22.88 0.62
2017 8.22 0.55 20.88 0.66
2018 10.1 0.57 17.9 0.73
2019 9.54 0.64 18.88 0.82

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