Part I: Hong Kong Stock Market

1. Based on your group number, determine the company for your analysis based on the stock code of the Hong Kong Stock Exchange. (003 HK&CHINA Gas)
2. The study period is from 2^nd January, 2018 to 31^th December, 2019.

Download daily trading data for that company in the study period. Present the data as Appendix in your report.

3. Download daily trading data for the Hang Seng Index in the study period. Present the data as Appendix in your report.
4. Find the risk free rate. Present the finding and cite the source. (1 mark)
5. Calculate the standard deviation of the stock in the study period. (2 marks)
6. Calculate the standard deviation of the market (use the Hang Seng Index) in the study period. (2 marks)
7. Calculate the Beta for that company.

List out the formulae that are used (1 mark).

Show the steps for the calculation of Beta. You need to capture the screen to show the steps of calculation and present the formulae you input in the cells of EXCEL. (5 marks)

8. Calculate the expected return of that company. (1 mark).
9. Calculate the actual return for holding the stock in the study period. (1 mark)
10. Check if the expected return is the same as the actual return. Comment on the difference if any. (2 marks)