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Year Period (Month) Price (I) Price (M) Ri RM

The document contains monthly stock market index prices and returns for two years from 2016 to 2017. It shows that the average monthly return (Rm) was 6.92% while the average individual stock return (Ri) was -0.34%. A correlation analysis found a very weak negative correlation between the two returns. The beta calculated from the covariance and variances was -0.00045, indicating the market has slightly more risk than the average stock.

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Mahmudul Kabir
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29 views

Year Period (Month) Price (I) Price (M) Ri RM

The document contains monthly stock market index prices and returns for two years from 2016 to 2017. It shows that the average monthly return (Rm) was 6.92% while the average individual stock return (Ri) was -0.34%. A correlation analysis found a very weak negative correlation between the two returns. The beta calculated from the covariance and variances was -0.00045, indicating the market has slightly more risk than the average stock.

Uploaded by

Mahmudul Kabir
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Year Period(month) Price(i) Price(M) Ri Rm

January 1237.9 3967


February 1246.1 4629 0.66% 16.69%
March 1232.2 4129 -1.12% -10.80% 0.8
April 1239.9 4422 0.62% 7.10%
May 1106.3 4262 -10.78% -3.62%
June 1185.2 3772 7.13% -11.50% 0.6
July 1124.2 5029 -5.15% 33.32%
August 1099.9 4093 -2.16% -18.61%
September 1104.2 6816 0.39% 66.53% 0.4
October 1088.1 3890 -1.46% -42.93%
November 1091.2 6305 0.28% 62.08%
2016

December 1085.5 10705 -0.52% 69.79% 0.2


January 1100.9 9567 1.42% -10.63%
February 1108.7 11524 0.71% 20.46%
March 1088.4 8174 -1.83% -29.07%
0
April 1104.5 6147 1.48% -24.80% 1 2 3 4 5 6
May 1098.7 5061 -0.53% -17.67%
June 1157.1 8011 5.32% 58.29%
-0.2
July 1135.6 11661 -1.86% 45.56%
August 1140.3 8528 0.41% -26.87%
September 1164.9 6248 2.16% -26.74%
-0.4
October 1198.2 5374 2.86% -13.99%
November 1093.4 6200 -8.75% 15.37%
2017

December 1124.2 6280 2.82% 1.29%


-0.6

Average -0.34% 6.92%


SD 0.039173617 0.341024
Correlation(ρ) -0.00393534
Beta(β) -0.00045205
Alternative Method For calculating Beta :
Varience(σ^2) 0.111240914
Covariance(σ12) -5.0287E-05
Beta(β) -0.00045205
RF 4.25%
RM 6.92%
CAPM 4.25%
0.8

0.6

0.4

0.2
Rm
Ri

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

-0.2

-0.4

-0.6

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