Risk & Return Assignment

Using Excel and applied to a stock of your choice from the Kuwait Stock Exchange Kuwait stock exchange https://www.boursakuwait.com.kw/ (KSE), do the following:

Pull the historical prices from the start of the year for the stock and the KSE price-weighted index from KSEs website.

Use the data given to calculate daily returns your stock and the Market Index, and then calculate the total return over the period for the stock and the index. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and then dividing the result by the beginning price. Assume that dividends are already included in the index.)

Calculate the standard deviations of the returns for your stock and the Market Index.

Construct a scatter diagram graph that shows your stocks returns on the vertical axis and the Market Indexs returns on the horizontal axis.

Estimate your stocks betas as the slopes of regression lines with stock return on the vertical axis (y-axis) and market return on the horizontal axis (x-axis). Are these betas consistent with your graph?