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i figured out question 1, i just need question two please. Thanks ASSIGNMENT TWO DEADLINE: BOTH PARTS 17TH MAY THE MOODLE PORTAL WILL CLOSE THIS

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image text in transcribed i figured out question 1, i just need question two please. Thanks
ASSIGNMENT TWO DEADLINE: BOTH PARTS 17TH MAY THE MOODLE PORTAL WILL CLOSE THIS ASSIGNMENT MIDNIGHT ASSIGNMENT FORMAT CAN EITHER BE: 1. TYPED AND UPLOADED ON MOODLE AS A MICROSOFT WORD FILE 2. HAND WRITTEN, SCANNED AND UPLOADED ON MOODLE AS A PDF FILE NO HARD COPY OR EMAILED ASSIGNMENT WILL BE ACCEPTED. ALL SUBMISSIONS MUST BE VIA MOODLE PORTAL BEFORE THE ABOVE DEADLINE. THERE TWO PARTS TO YOUR ASSIGNMENT: PART ONE: TEN MULTIPLE CHOICE QUESTIONS TO BE ANSWERED DIRECTLY ON MOODLE PART TWO: THE FOLLOWING FOUR QUESTIONS EACH 20 MARKS. QUESTION ONE You are given below company ABC's closing prices and dividend payout from 1995 to 1998 Year ABC Close Price Dividend 1998 K 50.30 K1.14 1997 K11.4 K2.58 1996 K23.3 K1.7 1995 K20 K1.6 A. Compute the Arithmetic Mean(AM). (6 Marks) B. Compute the Geometric Mean (GM). (4 Marks) C. Calculate the dividend yield between year-end 1996 and year-end 1997 (4 Marks) D. Compute the standard deviation of company ABC. (6 Marks) [TOTAL: 20 MARKS] QUESTION TWO XYZ Ltd is selling at K45 a share. You would like to buy 200 shares for your preferred price of K42 a share using 60% margin. XYZ pays no dividends and the interest rate on a margin loan is 6%. You have two types of orders at your disposal: Limit buy order Stop loss order A. Which of the two types of orders would you place to buy XYZ at your preferred price? (1 Mark) B. Assuming your order in part A gets executed, how much money will you have to place in your margin account? (6 Marks) C. Which of the two types of orders would you place after buying XYZ in order to ensure that the shares are sold if they drop to K35? (1 Mark) D. With the price drop to K35 calculate the return on your investment following a sale at this (8 Marks) price. E. Describe two (2) characteristics of a good market. (4 Marks) [TOTAL: 20 MARKS]

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