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Ja Stella is considering investing in Exxon-Mobil (XOM), and the stock's closing prices over the years were as follows: a. Determine the annual return and
Ja Stella is considering investing in Exxon-Mobil (XOM), and the stock's closing prices over the years were as follows: a. Determine the annual return and average return for Exxon-Mobil for the last 10 years. (20 marks) b. What is the risk of the stock over this period? (10 marks) c. Research has indicated that the market returns were 5.09% per annum, with a standard deviation of 26.59%. If the correlation coefficient between Exxon-Mobile and the market is 0.94 , calculate (with explanation) the beta of Exxon-Mobil (10 marks) d. What is the range of returns for Exxon-Mobil stock? (10 marks) Ja Stella is considering investing in Exxon-Mobil (XOM), and the stock's closing prices over the years were as follows: a. Determine the annual return and average return for Exxon-Mobil for the last 10 years. (20 marks) b. What is the risk of the stock over this period? (10 marks) c. Research has indicated that the market returns were 5.09% per annum, with a standard deviation of 26.59%. If the correlation coefficient between Exxon-Mobile and the market is 0.94 , calculate (with explanation) the beta of Exxon-Mobil (10 marks) d. What is the range of returns for Exxon-Mobil stock? (10 marks)
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