Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments An Introduction

Authors: Herbert B. Mayo

13th Edition

0357127951, 978-0357127957

More Books

Students also viewed these Finance questions

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago