Question: As a Financial Analyst, you are required to select ONE (1) company from the construction sector that is listed on the stock market. Download the
As a Financial Analyst, you are required to select ONE (1) company from the construction sector that is listed on the stock market. Download the company’s weekly share prices over the period 1 April 2021-15 July 2021. You have been tasked to perform the following: Firstly, to construct the beta for the selected company using the data collected over the period 1 April 2021-15 July 2021, then to construct the risk-return trade-off model using the data collected above. You may consider the efficient frontier expression or the CAPM (capital asset pricing model) and finally, to estimate the fundamental value of the company’ share price for the following two weeks (on 22 & 29 July 2021) using the right valuation model. You may use your own assumptions in addressing the above issues. Show the workings.
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