Question 1 (15 marks) Day KLCI Closing Index 1 2 3 4 5 6 7 8 9 10 ABC Berhad Closing Price (RM) 1.20 1.40 1.50 1.30 1.20 1.20 1.30 1.20 1.35 1.55 ZEF Berhad Closing Price (RM) 5.00 5.20 5.10 5.30 5.25 5.30 5.15 5.50 5.40 5.35 1650 1688 1670 1640 1675 1680 1655 1670 1680 1660 The above information shows the closing stock prices of ABC Berhad and ZEF Berhad together with the stock market Index (KLCI) for ten (10) days of stock market transaction. Compute the standard deviation for return on stock ABC Berhad and ZEF Berhad. Explain which is a riskier stock based on the standard deviation. (ii) Compute and explain the range of return due to risk based on 68% probability for stock ABC Berhad and ZEF Berhad. (iii) Compute coefficient of variation for stocks ABC Berhad and ZEF Berhad. State which is the riskier stock for each unit of return. (iv) Compute the Beta for both stocks. Explain which is a riskier stock based on Beta. (v) Perform segregation to show the portion (%) of systematic risk and unsystematic risk for stock ABC Berhad (only). Question 1 (15 marks) Day KLCI Closing Index 1 2 3 4 5 6 7 8 9 10 ABC Berhad Closing Price (RM) 1.20 1.40 1.50 1.30 1.20 1.20 1.30 1.20 1.35 1.55 ZEF Berhad Closing Price (RM) 5.00 5.20 5.10 5.30 5.25 5.30 5.15 5.50 5.40 5.35 1650 1688 1670 1640 1675 1680 1655 1670 1680 1660 The above information shows the closing stock prices of ABC Berhad and ZEF Berhad together with the stock market Index (KLCI) for ten (10) days of stock market transaction. Compute the standard deviation for return on stock ABC Berhad and ZEF Berhad. Explain which is a riskier stock based on the standard deviation. (ii) Compute and explain the range of return due to risk based on 68% probability for stock ABC Berhad and ZEF Berhad. (iii) Compute coefficient of variation for stocks ABC Berhad and ZEF Berhad. State which is the riskier stock for each unit of return. (iv) Compute the Beta for both stocks. Explain which is a riskier stock based on Beta. (v) Perform segregation to show the portion (%) of systematic risk and unsystematic risk for stock ABC Berhad (only)