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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
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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