Power and Communication Technologies (GUCON)

Running Head: CORPORATE FINANCE 1
CORPORATE FINANCE

CORPORATE FINANCE
Contents
Part 1................................................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................3
Question 3....................................................................................................................................3
Question 4....................................................................................................................................3
Part II...............................................................................................................................................3
References........................................................................................................................................6

CORPORATE FINANCE
Part 1
Question 1
Average mean return
SABIC EXTRA
0.38% 0.35%
Question 2
Variance
0.33% 0.45%
Question 3
Standard Deviation
5.69% 6.67%
Question 4
Correlation Matrix
Column 1 Column 2
1
0.177524316 1
If the risk is to be reduced, according to standard deviation SABIC is
the right stock to choose as it’s more reliable in comparison of extra. In
terms of variance, SABIC shall be taken by those who are conservative
investors and EXTRA shall be used for investment by aggressive investors
who are risk averse. Overall SABIC is a good choice to hold on to for long
term purposes (Bhardwaj & Bangia, 2018).
Part II
Line chart is a representation of the data of the stock price of the asset that connects a
series of the data points with a continuous line. It is the basic chart which is drawn; to typically