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need help with this. umpulaliol (Ivaluatory-2 marks each question): Q1. As a broker, you are approached by a client who wants to invest money in
need help with this.
umpulaliol (Ivaluatory-2 marks each question): Q1. As a broker, you are approached by a client who wants to invest money in energy or oil & gas stocks. The only information you have available to advise your client is the stock price indexes for energy only is in natural logarithm inserted on the following table: Stock Price Index Return Daily Volatility OIL Energy OIL&GAS ENERGY &GAS Date ENERGY OIL&GAS Monday 19.62 105.20 Tuesday 19.69 115.80 Wednesday 19.75 116.28 Thursday 20.35 115.92 Friday 20.05 125.02 Monday 19.98 135.20 Average stdev correlation covariance 0.91 0.65 Your client is particularly interested in: a) The daily return for each stock b) The average daily return c) The relative risk associated to each stock d) The daily volatility of each stock e) Average daily volatility f in which stolk should investment money be invested Step by Step Solution
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