FINANCIAL MANAGEMENT

ASSIGNMENT

KARTIK PANWAR (50278)

BBS 2D

Adjusted closed price of igl ltd limited for 11 months

Date
11/1/2013
10/1/2013
9/2/2013
8/1/2013
7/1/2013
6/3/2013
5/1/2013
4/1/2013
3/1/2013
2/1/2013
1/1/2013

Adj
Close
287.7
293.2
267.8
248.87
290.39
329.52
326.28
326.38
311.01
308.61
334.51

returns
-5.5
25.4
18.93
-41.52
-39.13
3.24
-0.1
15.37
2.4
-25.9
334.51

Adjusted closed price of s&p 500 index

Date
11/1/2013
10/1/2013
9/2/2013
8/1/2013
7/1/2013
6/3/2013
5/2/2013
4/1/2013
3/1/2013
2/1/2013
1/2/2013

Adj Close
21196.81
21164.52
19379.77
18619.72
19345.7
19395.81
19760.3
19504.18
18835.77
18861.54
19894.98

returns
32.29
1784.75
760.05
-725.98
-50.11
-364.49
256.12
668.41
-25.77
-1033.44
19894.98

BETA
=

Covariance of Market Return with Stock Return

Variance of Market Return

= 566190.4/ 32815621.4
= 0.017254

The BETA is 0.0165, this means one percent in market return index
causes exactly 1 percent change in the stock return. It indicates stock
market moves in tandem with market.

Standard deviation

variance= 9962.219
standard deviation= 104.6826