Discuss the method is used to measure a firm market risk

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Question -

a) The prices for the Gas Corporation for the second quarter of 2021 are given below. The price of the stock on April 1, 2021 was $130. Find the holding period return for an investor who purchased the stock on April 1, 2021 and sold it the last day of June 2021.

Month End of 2021

Price ($)

April

125.00

May

138.50

June

132.75

b) You purchased 500 shares of A.M.J. Ltd common stock one year ago for $50 per share. You received a dividend of $2 per share today and decide to take your profits by selling at $54.50 per share. Estimate your amount of return in $ and holding period return in percentage.

c) Differentiate between systematic and unsystematic risk using a relevant diagram.

d) Discuss the method is used to measure a firm's market risk.

Reference no: EM133126226

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