1. MSU-DAF Investment had appointed you as the leader for Risk Analyst team. The team is...

Transcribed Image Text:

1. MSU-DAF Investment had appointed you as the leader for Risk Analyst team. The team is required to advise the board on the investment plan to be undertaken. The plan is to buy two shares of Bursa Malaysia paper manufacturing companies. Extracted from finance.yahoo.com, the historical share prices for the selected paper manufacturing companies are as follows: Date 31/12/2016 31/12/2015 31/12/2014 31/12/2013 31/12/2012 Advanced Packaging Technology (M) Berhad (9148.KL) (RM) 2.24 2.28 2.14 1.94 1.41 Ornapaper Berhad (4707.KL) (RM) 0.94 1.02 1.00 0.80 0.63 Box-Pak Malaysia Berhad (6297.KL) (RM) 2.04 2.76 2.04 2.19 2.06 As a Risk Analyst of MSU-DAF Investment, you are required to do a correlation analysis of the following: (a) Advanced Packaging Technology (M) Berhad and Ornapaper Berhad. (b) Ornapaper Berhad and Box-Pak Malaysia Berhad. (c) Box-pak Malaysia Berhad and Advanced Packaging Technology (M) Berhad. (d) Based on the above analysis, advice the board on the preferable paper manufacturing companies to be chosen. 1. MSU-DAF Investment had appointed you as the leader for Risk Analyst team. The team is required to advise the board on the investment plan to be undertaken. The plan is to buy two shares of Bursa Malaysia paper manufacturing companies. Extracted from finance.yahoo.com, the historical share prices for the selected paper manufacturing companies are as follows: Date 31/12/2016 31/12/2015 31/12/2014 31/12/2013 31/12/2012 Advanced Packaging Technology (M) Berhad (9148.KL) (RM) 2.24 2.28 2.14 1.94 1.41 Ornapaper Berhad (4707.KL) (RM) 0.94 1.02 1.00 0.80 0.63 Box-Pak Malaysia Berhad (6297.KL) (RM) 2.04 2.76 2.04 2.19 2.06 As a Risk Analyst of MSU-DAF Investment, you are required to do a correlation analysis of the following: (a) Advanced Packaging Technology (M) Berhad and Ornapaper Berhad. (b) Ornapaper Berhad and Box-Pak Malaysia Berhad. (c) Box-pak Malaysia Berhad and Advanced Packaging Technology (M) Berhad. (d) Based on the above analysis, advice the board on the preferable paper manufacturing companies to be chosen.

Answer rating: 100% (QA)

To perform a correlation analysis we need to calculate the correlation coefficient between the historical share prices of the selected paper manufactu... View the full answer