Question 3 The following limited information is available for returns on two shares listed on the Stock Exchange. Year 2
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Question 3 The following limited information is available for returns on two shares listed on the Stock Exchange. Year 2
Question 3 The following limited information is available for returns on two shares listed on the Stock Exchange. Year 2018 2019 2020 2021 MTN VODACOM 0.20 0.16 0.28 0.12 0.36 0.10 0.12 0.18 Despite the limited number of readings, a normal distribution of returns may be assumed. In addition, past performance is considered to reflect expected future performance. Required: a) Calculate the average return, standard deviation, and co-efficient of variation for each of the two shares. (5 marks) b) Using the properties of a normal distribution and the z score tables, establish the probability for each share of a return lower than 10%. (5 marks)
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