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Jason is considering investing in Kewpie Travels. The stock's closing prices over the years were as follows: a. Determine the stock annual return and average
Jason is considering investing in Kewpie Travels. The stock's closing prices over the years were as follows: a. Determine the stock annual return and average return for the last 10 years. (15 marks) b. What is the risk of the stock over this period? (10 marks) c. Earlier studies showed that the market returns were 12.13% per annum, with a standard deviation of 11.48%. If the correlation coefficient between Kewpie Travels and the market is 1.35, calculate (with explanation) the beta of the i. Market (5 marks) ii. Kewpie Travels (10 marks) d. What is the potential range of returns for Kewpie Travels? (5 marks) Jason is considering investing in Kewpie Travels. The stock's closing prices over the years were as follows: a. Determine the stock annual return and average return for the last 10 years. (15 marks) b. What is the risk of the stock over this period? (10 marks) c. Earlier studies showed that the market returns were 12.13% per annum, with a standard deviation of 11.48%. If the correlation coefficient between Kewpie Travels and the market is 1.35, calculate (with explanation) the beta of the i. Market (5 marks) ii. Kewpie Travels (10 marks) d. What is the potential range of returns for Kewpie Travels
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