Question: Task 4: Risk and Return [30 marks] Extract the weekly price of assigned company to you and FTSE250 for one year and show the results
Task 4: Risk and Return [30 marks]
Extract the weekly price of assigned company to you and FTSE250 for one year and show the results of the following items: a) Show the weekly return of the company and FTSE 250 in the same graph. What is your interpretation of the change of return of the company comparing with the market index?
b) Calculate the weekly standard deviation and return for both the company and FTSE 250. What is your interruption of the risk and return of the company comparing with the market index?
NOTE: I need solution of Task 4 Only. Here I am Providing Task 3 just to understand Task 4.
because I don't know if it is required in to solve Task 4.
No Need to solve Task 3, I have it done already
(((((((Task 3: Cost of Capital [30 marks] The activities of Tesco are nanced by both debt and equity. You are required to collect the following information and calculate the weighted average cost of capital (WACC) of Tesco. 1. Market Cap of Tesco. [5 marks] 2. Long-term Debt of Tesco. (From the recent released balance sheet of company) [5 marks] 3. Beta of Tesco as measure of systematic risk. [5 marks] 4. 10-year Bond rate of UK government as proxy of risk-free rate. [5 marks] 5. What is the weighted average cost of capital (WACC) of Tesco? (Hint: according to IG market, the average of recent yearly returns of FTSE100 as proxy of UK market is 7.5%; UK corporate tax rate is 19%). [10 marks])))))))
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Task 4: Risk and Return (30 marks] Extract the weekly price of assigned company to you and FTSE250 for one year and show the results of the following items: 1. Show the weekly return of the company and FTSE 250 in the same graph. What is your interpretation of the change of return of the company comparing with the market index? (15 marks] 2. Calculate the weekly standard deviation and return for both the company and FTSE 250. What is your interruption of the risk and return of the company comparing with the market index? (15 marks] Task 4: Risk and Return (30 marks] Extract the weekly price of assigned company to you and FTSE250 for one year and show the results of the following items: 1. Show the weekly return of the company and FTSE 250 in the same graph. What is your interpretation of the change of return of the company comparing with the market index? (15 marks] 2. Calculate the weekly standard deviation and return for both the company and FTSE 250. What is your interruption of the risk and return of the company comparing with the market index? (15 marks]
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