Question: QUESTION 1 Calculate the average continuous monthly returns for the following dividend adjusted share price and market index. Date Share Price (Ri) Market index (Rm)


QUESTION 1 Calculate the average continuous monthly returns for the following dividend adjusted share price and market index. Date Share Price (Ri) Market index (Rm) August20 $2.75 1 ,28500 September-20 $2.90 1,290.00 October20 $2.95 1 ,34000 November20 $3.25 1 ,36000 (a) Has this share under or over performed relative to the market? (b) Suppose the share's beta is 1.5 (B = 1.5) and the annual risk-free rate is 0.03. If you accept that past performance gives you the best guide to future returns, would you invest in this share? Briey explain your decision. QUESTION 2 Find the derivative of y with respect to x for these functions: (a) 3 y=2x y y =(4x _ (3x+x (1x 2x) 111(30x2)+ 2 3" 2.5) '2 +1)(2x3 +1) y = 15(50x +10)_3 Find the indenite integral of the following function f(x) : 2x+ 7x 6 For the equation y = 2 - 2x - 2x2 + 3x3 i) ii) Find the equation for the linear approximation when x = 2. Find the equation for the quadratic approximation, also when x = 2
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