Calculate the share price for xyz limited

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Reference no: EM133189397

Question -

a) It is rare if not impossible to beat the market hence no need for portfolio construction and management. In fact, no need for portfolio managers. Do you agree? Explain.

b) Contrast the risk tolerance and Liquidity needs for Banks and Individual investors.

c) Explain the application of derivatives in investments and portfolio management citing relevant examples.

d) Discuss how coupon rate, maturity and presence of embedded options affect a bond's risk.

e) An investor is considering buying shares of XYZ limited. He has identified three companies that are in the same industry as XYZ. Data for the companies are shown below:

Comparable company data

XYZ

Comparable 1

Comparable 2

Comparable 3

Current stock price

?

Sh. 54

Sh. 36.5

Sh. 108.2

Earnings Per Share

Sh. 1.75

Sh. 2.8

Sh. 2.1

Sh. 6.5

Calculate the share price for XYZ Limited.

Reference no: EM133189397

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