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Q8. You observe the following closing prices on four different stocks over the past 12 months: STOCK CAREPLUS RUBBEREX WELLCAL GOODWAY Date Close (RM) Close
Q8. You observe the following closing prices on four different stocks over the past 12 months: STOCK CAREPLUS RUBBEREX WELLCAL GOODWAY Date Close (RM) Close (RM) Close (RM) Close (RM) 1/8/2019 0.13 0.48 1.19 0.175 1/9/2019 0.13 0.515 1.15 0.2 1/10/2019 0.145 0.565 1.14 0.175 1/11/2019 0.13 0.54 1.12 0.19 1/12/2019 0.16 0.54 1.12 0.185 1/1/2020 0.32 0.635 1.09 0.175 1/2/2020 0.235 0.73 1.08 0.175 1/3/2020 0.275 0.8 0.765 0.135 1/4/2020 0.455 1.5 0.8 0.165 1/5/2020 1.4 3.56 0.865 0.16 1/6/2020 1.42 3.13 0.805 0.165 1/7/2020 1.89 3.56 0.815 0.155 Calculate: (a) Expected returns for each stock over the 12 months. (b) Standard deviation of returns for each stock. (c) On the basis of expected return [E(Ri)] alone, discuss which stocks are preferable. (d) On the basis of standard deviation (6) alone, discuss which stocks are preferable. (e) On the basis of the coefficients of variation (CVs) alone, discuss which stocks are preferable
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