K Co. is a publicly listed company involved in the production of highly technical and sophisticated electronic components for complex machinery. It has a number of diverse and popular products, an active research and development department, significant cash reserves and a highly talented management who are very good in getting products to market quickly.
A new industry that K Co. is looking to venture into is biotechnology, which has been expanding rapidly and there are strong indications that this recent growth is set to continue. However, K Co. has limited experience in this industry. Therefore, it believes that the best and quickest way to expand would be through acquiring a company already operating in this industry sector.
Discussions taken place about the possibility of acquiring Tee Co. being acquired by K Co. Price of Tee company in stock market during last one year are as follows.
Price at the end of month
Month
Month end Price
KSE 100 INDEX
Jan
175
32600
Feb
185
33900
March
152
33500
April
190
34000
May
195
33500
June
188
33800
July
190
33700
Aug
195
33200
Sep
190
32900
Oct
185
33100
Nov
190
33900
Dec
88
34100
- Calculate average return for both stock and market
- Calculate Standard deviation for both
- Calculate coefficient of variation for both
- Calculate Beta of stock
- Suggest what you understand from Beta
K Co. is a publicly listed company involved in the production of highly technical and sophisticated electronic components for complex machinery. It has a number of diverse and popular products, an active research and development department, significant cash reserves and a highly talented management who are very good in getting products to market quickly.
A new industry that K Co. is looking to venture into is biotechnology, which has been expanding rapidly and there are strong indications that this recent growth is set to continue. However, K Co. has limited experience in this industry. Therefore, it believes that the best and quickest way to expand would be through acquiring a company already operating in this industry sector.
Discussions taken place about the possibility of acquiring Tee Co. being acquired by K Co. Price of Tee company in stock market during last one year are as follows.
Price at the end of month
|
Month |
Month end Price |
KSE 100 INDEX |
|
Jan |
175 |
32600 |
|
Feb |
185 |
33900 |
|
March |
152 |
33500 |
|
April |
190 |
34000 |
|
May |
195 |
33500 |
|
June |
188 |
33800 |
|
July |
190 |
33700 |
|
Aug |
195 |
33200 |
|
Sep |
190 |
32900 |
|
Oct |
185 |
33100 |
|
Nov |
190 |
33900 |
|
Dec |
88 |
34100 |
- Calculate average return for both stock and market
- Calculate Standard deviation for both
- Calculate coefficient of variation for both
- Calculate Beta of stock
- Suggest what you understand from Beta
