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Please Answer Question 2 A) B) C) QUESTION 2 (a) Calculate both the average discrete and average continuous monthly returns for the following dividend adjusted
Please Answer Question 2 A) B) C)
QUESTION 2 (a) Calculate both the average discrete and average continuous monthly returns for the following dividend adjusted share price and market index. Share Price Market Index Date Rit $2.55 $3.10 $3.45 $3.85 Rmt. 2,175.00 2,200.00 2,305.00 August-18 September-18 October-18 November-18 2,505.00 (b) Has this share under or over performed relative to the market? Suppose this share has a beta of 2.0 (B 2.0) and the anmual risk-free rate is 0.02. Would you invest? (c) (1.5 marks)
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