Question

Bank #1

Date	open	close
1.1	20.8	20.9
7.1	20.86	21.28
14.1	22.3	22.66
21.1	23.12	23.54
28.1	23.44	23.54
4.2	23.5	23.54
11.2	22.26	22.3
18.2	22.8	23
25.2	23.14	23.5

Bank # 2

date	open	close
1.1	24	24.02
7.1	24.1	24.04
14.1	24.4	24.14
21.1	24.26	24.14
28.1	24	24.08
4.2	24.04	24.08
11.2	23.96	24.14
18.2	24.32	24.1
25.2	24.26	24.4

I need to make a comparison for these tow bank according to the share price if I follow the closing price up to 9 week every Friday and if there is need to find financial ratio please calculate it

Answer 1

We can compare the two banks based on the return they generate during the 9 week period

Let us take bank 1. The open price was 20.8 in week 1 and the closing price on week 9 was 23.5

So the net return of bank 1 over 9 weeks = (23.5-20.8)/20.8 = 2.7/20.8 = 0.1298 = 12.98%

Therefore, bank 1 generated a return of 12.98% over 9 weeks

Now, let us consider bank 2. The open price was 24 in week 1 and the closing price on week 9 was 24.4

So the net return of bank 2 over 9 weeks = (24.4-24)/24 = 0.4/24 = 0.0167 = 1.67%

Therefore, bank 2 generated a return of 1.67% over 9 weeks

From these data, we can conclude that Bank 1 is a better performing bank when compared to bank 2