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please i need answers fast with working this is the whole question there's norhonf else Part 2 ( 25 marks) - risk and return You

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Part 2 ( 25 marks) - risk and return You are considering investing in stocks and have identified the following potential stocks. They are Alibaba Group Holding Limited (BABA), Amazon (AMZN), Kogan (KGN) and China Petroleum \& Chemical (386). The table below shows the historical share prices ( $ ) between 2016 and 2022. Note that these prices are recorded on the 1st day of the year, for example, 1st of January 2020 . Students should assume no dividend is distributed during this period and ignore the exchange rate conversion. 1. (2 marks) Provide a discussion on the similarities and differences of two companies: China Petroleum \& Chemical and Alibaba. Minimum four key points for full marks. Hints: students may consider the following when attempting this question. - What services/products each company offers? - Which industry the company operates in? - Where their stocks are listed? - Where the company is found? Do not forget to cite the source of information. Referencing (Chicago 17B referencing) is mandatory. 2. (8 marks) Calculate the return and risk (standard deviation) of each stock. 3. ( 2 marks) Explain the relation (positive or negative) between risk and return based on your answers in the previous question. 4. (4 marks) Calculate the correlation coefficient between (1) Amazon and Alibaba, and (2) Amazon and China Petroleum \& Chemical. 5. (3 marks) Page 5 of 6 Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 50% in Amazon and 50% in Alibaba. 6. (3 marks) Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 80% in Amazon and 20% in China Petroleum. 7. (3 marks) Compare the portfolios in parts 5 or 6 . Which portfolio (parts 5 or 6 ) provides better diversification? Define diversification and explain your answer(s). Part 2 ( 25 marks) - risk and return You are considering investing in stocks and have identified the following potential stocks. They are Alibaba Group Holding Limited (BABA), Amazon (AMZN), Kogan (KGN) and China Petroleum \& Chemical (386). The table below shows the historical share prices (\$) between 2016 and 2022. Note that these prices are recorded on the 1st day of the year, for example, 1st of January 2020. Students should assume no dividend is distributed during this period and ignore the exchange rate conversion. 1. (2 marks) Provide a discussion on the similarities and differences of two companies: China Petroleum \& Chemical and Alibaba. Minimum four key points for full marks. Hints: students may consider the following when attempting this question. - What services/products each company offers? - Which industry the company operates in? - Where their stocks are listed? - Where the company is found? Part 2 ( 25 marks) - risk and return You are considering investing in stocks and have identified the following potential stocks. They are Alibaba Group Holding Limited (BABA), Amazon (AMZN), Kogan (KGN) and China Petroleum \& Chemical (386). The table below shows the historical share prices ( $ ) between 2016 and 2022. Note that these prices are recorded on the 1st day of the year, for example, 1st of January 2020 . Students should assume no dividend is distributed during this period and ignore the exchange rate conversion. 1. (2 marks) Provide a discussion on the similarities and differences of two companies: China Petroleum \& Chemical and Alibaba. Minimum four key points for full marks. Hints: students may consider the following when attempting this question. - What services/products each company offers? - Which industry the company operates in? - Where their stocks are listed? - Where the company is found? Do not forget to cite the source of information. Referencing (Chicago 17B referencing) is mandatory. 2. (8 marks) Calculate the return and risk (standard deviation) of each stock. 3. ( 2 marks) Explain the relation (positive or negative) between risk and return based on your answers in the previous question. 4. (4 marks) Calculate the correlation coefficient between (1) Amazon and Alibaba, and (2) Amazon and China Petroleum \& Chemical. 5. (3 marks) Page 5 of 6 Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 50% in Amazon and 50% in Alibaba. 6. (3 marks) Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 80% in Amazon and 20% in China Petroleum. 7. (3 marks) Compare the portfolios in parts 5 or 6 . Which portfolio (parts 5 or 6 ) provides better diversification? Define diversification and explain your answer(s). Part 2 ( 25 marks) - risk and return You are considering investing in stocks and have identified the following potential stocks. They are Alibaba Group Holding Limited (BABA), Amazon (AMZN), Kogan (KGN) and China Petroleum \& Chemical (386). The table below shows the historical share prices (\$) between 2016 and 2022. Note that these prices are recorded on the 1st day of the year, for example, 1st of January 2020. Students should assume no dividend is distributed during this period and ignore the exchange rate conversion. 1. (2 marks) Provide a discussion on the similarities and differences of two companies: China Petroleum \& Chemical and Alibaba. Minimum four key points for full marks. Hints: students may consider the following when attempting this question. - What services/products each company offers? - Which industry the company operates in? - Where their stocks are listed? - Where the company is found

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