Marking Marks awarded for quality of research, presentation, analysis, content, style and Criteria interpretations of your answers derived from each question. Weight 20% Assessment Due Type of Collaboration INDIVIDUAL COURSEWORK Style and This assignment requires the use of MS. Excel to gather data and answering the format questions. All data on your findings are to be shown in an appendix. Format Requirements The assignment must be typed in the Times New Roman font, size 12 and line spacing 1.5. Please ensure that your name, student number and page number are displayed on each page and signed cover sheet must be included. Failure to meet any of these presentation requirement will result in a loss of marks. Detailed Questions information Using historical share prices (in monthly frequency) for the time period from 1st January 2016 - 15 Jan 2021 of the following listed companies given below: Individual Stock (Choose 2) Market benchmark (Index) 1. Top Glove Corporation Bhd TOPGLOV (7113) 2. Kossan Rubber Industries Bhd FTSE Malaysia KLCI (KLSE) KOSSAN (7153) Supermax Corporation Bhd SUPERMX (7106) Please use https://www.investing.com/ to download the data above. Answer the questions listed below. All solutions for each question should be typed and presented neatly. Please use Microsoft Excel to answer the questions. i. Create a frequency distribution table and histogram with an appropriate bin size of your selected stock and KLCI index share prices. (6 marks) ii. Calculate the mean, standard deviation, and holding period of the share price, for each of your selected stock and KLCI index. (10 marks) iii. Calculate the mean and standard deviation of the return, for each of your selected stock and KLCI index. (10 marks) iv. If a month was chosen at random, find the probability that your selected individual stock will be within 2 cents from the sample mean. (8 marks) v. Construct a 95% confidence interval for the true population mean for each of the selected stock share price. (8 marks) vii. A financial manager claims that the average share price for each of your selected individual stock is to be more than RM 4/share. Test at 1% significance level of the manager's claim. (11 marks) vii. A trader claims that stock A has a higher return compared to stock B. Test at 1% significance level if this claim is true. (Stock A and B is your selected stock) (7 marks) viii. Calculate the alpha and beta for each of the selected stock's return. Explain the rationale behind alpha and beta of your chosen stock. (please use KLCI index as your market benchmarking) (10 marks)
