Please answer the questions below:

1- Find the average daily market return (return for Al-Quds index)

2- Find the average daily return for Bop

3- Find the average daily return for PALTEL

4- Find the expected daily return for PEC

5- Find the standard deviation for OOREDOO

6- Find the standard deviation for PADICO

7- Find the coefficient of variation for AIG (calculate it as r/sd)

8- Find the coefficient of variation for APIC (using the formula r/sd)

9- Based on the SD, rank the following stocks from the least risky to the highest risk

Lowest Risk

Answer 1Choose.BOP PEC AIG OOREDOO PALTEL APIC

The second rank in the lowest risk

Answer 2Choose.BOP PEC AIG OOREDOO PALTEL APIC

The second rank in the highest risk

Answer 3Choose.BOP PEC AIG OOREDOO PALTEL APIC

Highest Risk

Answer 4Choose..BOP PEC AIG OOREDOO PALTEL APIC

10- Find Beta for APIC

11- Find beta for PALTEL

12- Rank the stocks from the highest to the lowest beta

Lowest Beta

Answer 1Choose..AIG PADICO BOP PALTEL APIC OOREDOO

The second rank in the lowest beta

Answer 2Choose..AIG PADICO BOP PALTEL APIC OOREDOO

The second rank in highest beta

Answer 3Choose..AIG PADICO BOP PALTEL APIC OOREDOO

Highest Beta

Answer 4Choose..AIG PADICO BOP PALTEL APIC OOREDOO

13- Explain the differences in ranking stocks according to the standard deviation (SD) and beta. This should entail explaining the different aspects that SD

and beta measure, and why a stock that has the highest standard deviation might not have the highest beta.

14- Based on CAPM, and assuming a risk-free rate of 2% and a market return of 5.8%, what is the required return for PEC?

15- Using CAPM, and assuming a risk-free rate of 2% and a market return of 5.8%, what is the required return for PALTEL?

16- What is the dividend per share that PALTEL distributed for 2019?

17- Based on the zero-growth model, what is the intrinsic value of PALTEL stock?

18- Based on the zero-growth model and taking into consideration the current market price of PALTEL shares, is PALTEL overvalued or undervalued?

Select one:

a. Undervalued

b. Overvalued

19- Based on the zero-growth model and taking into consideration the current market price of PEC, is PEC stock overvalued or undervalued?

Select one:

a. Overvalued

b. Undervalued

20- Find the book value per share for OOREDOO (you must look for the required information in OOREDOO annual report for 2019)?

21- Based on the Book Value Per Share, is OOREDOO overvalued or undervalued?

Select one:

a. Overvalued

b. Undervalued

22- Using a P/E multiple approach and assuming an average P/E ratio for the investment industry of 12.94, what is PADICO intrinsic value?

23- Based on the P/E multiple approach, is PADICO overvalued or undervalued?

Select one:

a. Overvalued

b. Undervalued

24- Select at least two stocks you would not invest in based on the above analysis and their current market price

No

Answer 1Choose..PEC APIC OOREDOO PALTEL

No

Answer 2Choose.PEC APIC OOREDOO PALTEL

25- Please provide a satisfactory analysis (around 300 words) of why the above exercises are not sufficient to make a sound investment decision. The

discussion may refer to deficiencies in the models utilized, unrealistic assumptions, theoretical shortcomings, etc. The mark depends on the depth of your

analysis and your ability to address new knowledge that was not covered in class.