a. Calculate expected return and standard deviation for these FOUR (4) stocks. (8 marks) b. Plot the
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Question:
a. Calculate expected return and standard deviation for these FOUR (4) stocks.
(8 marks)
b. Plot the SML either on the graph paper or in Ms Words. Find the slope and the risk
premium from the graph and calculation.
(9 marks)
c. Interpret the alpha for each stock and indicate in the graph. (4 marks)
d. Criticise the findings for all the four stocks according to the Security Market Line
(SML) dividend discounted model (DDM) and from (a).
(6 marks)
Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
Posted Date: