Calculate the holding period return for each stock

Reference no: EM133599450 , Length: word count:3000

Finance for Business

Assessment - Risk Return and Portfolio Evaluation.

Questions
Write a brief overview of four companies, including the following details
Industry classification
Main business operation and products,
target market and competitors (5 marks)

Calculate the monthly return and fill the table below. If there are no return values, indicate them as N.A.

Derive suitable graphs to show the volatility of monthly returns, comment on significant observations and critically review the possible reasons behind the return volatility.

Calculate the arithmetic mean, variance and standard deviation of monthly return and comment on the risk and return behaviour of the stocks

Calculate the geometric mean of the monthly return for each stock, and explain what these values indicate about the companies' returns

Using the calculated average monthly return, estimate the annual return.

Calculate the holding period return for each stock.

Assume that on January 1, 2020, you invested $15,000 in the stock with the highest return out of the four given stocks. Calculate the value of your investment at the end of Oct 2023.

Based on the monthly return, estimate these stocks' correlations and critically review your findings.
Please insert the correlation matrix from your Excel output

Assume an investor seeks your help to construct a portfolio consisting of two stocks from those you reviewed. Advise him on the correct selection of stocks, based on correlation analysis, and then review the portfolio's risk and return.

Reference no: EM133599450

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