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Q.2: (5 marks) The price of Abbas Sugar Mills (AABS) is currently trading at Rs 35 per share. Following table comprises of Analysts prediction about
Q.2: (5 marks) The price of Abbas Sugar Mills (AABS) is currently trading at Rs 35 per share. Following table comprises of Analysts prediction about the possible future prices and its associated probability of occurrence after 1 year Possible Future Prices (Rs/share) 38 30% 39 20% 33 10% 31 15% 25% 40 Using above information Calculate 1. Expected returns of AABS. 2. Average Expected return of AABS 3. Variance of AABS 4. Risk of AABS shares 5. Co-efficient of variation for AABS 6. Based on your results, is AABS a viable investment
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