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Stock 1 Stock 2 Market Index Year Stock Price Dividend Stock Price Dividend (Includes Dividends) 2013 K25.88 K1.73 K73.13 K4.50 17,495.97 2012 22.13 1.59 78.45

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Stock 1 Stock 2 Market Index Year Stock Price Dividend Stock Price Dividend (Includes Dividends) 2013 K25.88 K1.73 K73.13 K4.50 17,495.97 2012 22.13 1.59 78.45 4.35 13,178.55 2011: 24.75 1.50 73.13 4.13 13,019.97 2010: 16.13 1.43 85.88 3.75 9,651.05 2009: 17.00 1.35 90.00 3.38 8,403.42 2008: 11.44 1.28 83.63 3.00 7,058.96 Inc Required: A. Determine the appropriate average annual return for the two stocks and the benchmark. [15 Marks] B. Compute the yearly tracking error for each stock. [15 Marks) C. Explain the overall performance of each stock with reference to the benchmark. [5 Marks]

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