Reference no: EM132636809

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 popularproducts. an active research and development department, signi?cant 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 grth is set to continue. However, K Co. has limited experience in this industry. Therefore, it believes that the heat 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.

Question 1: Calculate average return for both stock and market. Calculate Standard deviation for both. Calculate coef?cient of variation for both. Calculate Beta of stock.