Calculate the daily market return over

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Risk and Return

Calculate the following using the data from Yahoo Finance (https://au.finance.yahoo.com/)for the company you selected (COMPANY SELECTED WAS FLIGHT CENTRE LIMITED - AUSTRALIA) for Question 1 of Assignment 1.

1. Calculate the daily market return over the last five years from the daily prices,calculate the monthly returns from the daily returns, and calculate the yearlyreturns from the monthly returns.

2. Calculate the total risk (i.e. yearly standard deviation of the daily returns).

3. Calculate the yearly systematic / market risk using the daily returns of the stock anddaily return of the market index.

4. Calculate the unsystematic risk / firm specific risk.Suggest whether this company is a good investment. Answer the following questions whilemaking your suggestion.

a) What is the basis for selection of this stock if you suggest this as a good investment?

b) Would you invest all your money into this stock? If not, why not? How will youaddress this concern?

Reference no: EM131179506

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