New Solution - Part 1 In this section, we have selected the...

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Part 1 In this section, we have selected the three companies, viz. Genting Singapore, Allgreen Properties and Singapore Airlines. These are three very distinct but large companies being traded at the Singapore Stock Exchange. While the Genting Singapore is the hospitality and hotel service industry, Allgreen properties is in the real estate and the Singapore Airlines is not an unfamiliar name in the field of aviation. The all three companies are distinct in their fields and nature. We picked up their 45 week data starting from week ended 6 – April – 2009 to 8 – February – 2010. We have placed the data in the Excel sheet and have calculated the average return as well as the standard deviation with the help of the MS – Excel functions. The results of the same are summarized as follows:   ALLGREE N SIA GENTIN G STI Average   Weekly  Returns 0.0217 0.0058 0.0162 0.0094 Standard Deviations 0.0860 0.0392 0.0637 0.0356 Variance 0.0074 0.0015 0.0041 0.0013 As from the above table we can see that we have four sets of data. The first three columns indicate that of the three companies and the last column is that of the Straight Time Index which represents the market index. As we can see that the highest return among all is that of the Allgreen. This also indicates that it is the most aggressive sector of the all as its average return exceeded even the market index and the scrips from the other industries. Now it is often said - “higher the risk, higher the return”. The standard deviation is a very good indicator of the risk of any stock. From the above table, we can see that the Allgreen again is the riskiest stock among all as its SD is the highest. Next comes the Genting whose returns and the standard deviation comes second and the last among the three is Singapore Airlines whose returns is the lowest among the three stocks selected for the analysis purposes. Covariance:
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This note was uploaded on 05/13/2010 for the course MECH 17657 taught by Professor Ravikant during the Spring '10 term at Indian Institute of Technology, Delhi.

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New Solution - Part 1 In this section, we have selected the...

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