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Given below is hypothetical data on two stocks on the LUSE and the market data (All Lusaka Share Index). The market data already includes dividends

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Given below is hypothetical data on two stocks on the LUSE and the market data (All Lusaka Share Index). The market data already includes dividends paid during the year. Stock 1 Stock 2 Market Index Year Stock Price Dividend Stock Price Dividend (Includes Dividends) 2013: K25.88 K1.73 K73.13 K4.50 17,495.97 2012: 22.13 1.59 78.45 4.35 13,178.55 2011: 24.75 1.50 73.13 4.13 13,019.97 2010: 16.13 1.43 85.88 3.75 9,651.05 2009: 17.06 1.35 90.00 3.38 8,403.42 2008: 11.44 1.28 83.63 3.00 7,058.96 Required: Use Excel for the following questions (The worksheet to be uploaded in Moodle): i. Prepare a table presenting the Returns on the three securities for each year (Years, as Rows; Security Names as Columns). ii. Determine and explain the following for each security by referring to part (1) above: o The appropriate Annual Average Return o The Total risk exposure o The Downside deviation (Semi deviation) o The relationship between Stock 1 and the market, as well as Stock 2 and the market. [30 Marks]

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