THE RISK AND RETURN CALCULATION

Students will download the relevant stock prices for two companies from the Internet and perform risk and return calculations for the selected companies.

The purpose of this assignment is to provide students with the opportunity to:

1. Retrieve real time financial data via the Web;
2. Calculate the risk and return of selected stocks;
3. Construct a portfolio;
4. Calculate the portfolios expected risk and return;
5. Link risk return tradeoff to risk preference.

Students are instructed to follow the path shown below to retrieve the risk and return for the selected companies via Qatar Stock Exchange.

• Go to Qatar stock exchange website: www.qe.com.qa
• From the menu, click on Publications then Archived Trading reports
• Choose the 2020 monthly trading reports and hit submit, and then download the closing prices.

1. Compute monthly holding period returns (HPRs) for the two stocks. (Performance Area 2).
2. Compute the stocks expected return, variance, and standard deviation using historical data. (Performance Area 2).