Calculate average return for both stock and market

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Reference no: EM132636737

K Co. is a publicly listed company involved in the production of highly technical and sophisticated electronic components for complex machinery. It has a number of diverse and popular products, an active research and development department, significant cash reserves and a highly talented management who are very good in getting products to market quickly.

A new industry that K Co. is looking to venture into is biotechnology, which has been expanding rapidly and there are strong indications that this recent growth is set to continue. However, K Co. has limited experience in this industry. Therefore, it believes that the best and quickest way to expand would be through acquiring a company already operating in this industry sector.

Discussions taken place about the possibility of acquiring Tee Co. being acquired by K Co. Price of Tee company in stock market during last one year are as follows.

Price at the end of month

Month                           Month end Price              KSE 100 INDEX

Jan                                      175                         32600

Feb                                       185                       33900

March                                    152                       33500

April                                       190                       34000

May                                        195                     33500

June                                        188                    33800

July                                          190                   33700

Aug                                           195                   33200

Sep                                           190                   32900

Oct                                           185                   33100

Nov                                            190                  33900

Dec                                              88                 34100

Question 1: Calculate average return for both stock and market

Question 2: Calculate Standard deviation for both

Question 3: Calculate coefficient of variation for both

Question 4: Calculate Beta of stock

Reference no: EM132636737

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