a. A ltd has the following dividend per share & market price per share for the period 2002 to 2007
Year |
Dividend |
M.P./Share Rs. |
2002 |
1.53 |
31.25 |
2003 |
1.53 |
20.75 |
2004 |
1.53 |
30.88 |
2005 |
2 |
67 |
2006 |
2 |
100 |
2007 |
2 |
154 |
Calculate standard deviation.
Year | Dividend | MP | Return in
Amount [(MP-Previous MP)+Dividend] |
Return
in % [Return in Amount/Previous MP] |
2002 | 1.53 | 31.25 | ||
2003 | 1.53 | 20.75 | -8.97 | -0.28704 |
2004 | 1.53 | 30.88 | 11.66 | 0.561927711 |
2005 | 2 | 67 | 38.12 | 1.234455959 |
2006 | 2 | 100 | 35 | 0.52238806 |
2007 | 2 | 154 | 56 | 0.56 |
Return | D [Return-Average Return] |
D^2 [D*D] |
||
-0.28704 | -0.805386346 | 0.648647166 | ||
0.561927711 | 0.043581365 | 0.001899335 | ||
1.234455959 | 0.716109613 | 0.512812978 | ||
0.52238806 | 0.004041714 | 1.63355E-05 | ||
0.56 | 0.041653654 | 0.001735027 | ||
Expected
Portfolio Return =Average of Returns |
0.518346346 | Sum of D^2 | 1.165110842 | |
Variance =Sum of D^2/6 |
0.19418514 | |||
Std
deviation =sqrt(variance) |
0.440664431 = 44.067% |
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