Burgan bank data

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Part 1

Burgan Bank Agility Public Warehousing Company Kuwait Stock Exchange
Month Date Closing Price Stock Return Date Closing Price Stock Return Date Closing Price Stock Return
1 9/30/10 475 9/30/10 520
2 10/31/10 520 9.47% 10/31/10 540 3.85%
3 11/30/10 530 1.92% 11/30/10 495 -8.33%
4 12/30/10 530 0.00% 12/30/10 520 5.05%
5 1/31/11 550 3.77% 1/31/11 460 -11.54%
6 2/28/11 490 -10.91% 2/28/11 370 -19.57%
7 3/31/11 475 -3.06% 3/31/11 375 1.35%
8 4/28/11 550 15.79% 4/28/11 425 13.33%
9 5/31/11 540 -1.82% 5/31/11 375 -11.76%
10 6/30/11 510 -5.56% 6/30/11 330 -12.00%
11 7/31/11 495 -2.94% 7/31/11 295 -10.61%
12 8/31/11 450 -9.09% 8/31/11 265 -10.17%
13 9/29/11 500 11.11% 9/29/11 310 16.98%
14 10/31/11 480 -4.00% 10/31/11 390 25.81%
15 11/30/11 465 -3.13% 11/29/11 385 -1.28%
16 12/29/11 475 2.15% 12/29/11 375 -2.60%
17 1/31/12 460 -3.16% 1/31/12 370 -1.33%
18 2/29/12 455 -1.09% 2/29/12 420 13.51%
19 3/29/12 430 -5.49% 3/29/12 400 -4.76%
20 4/30/12 435 1.16% 4/30/12 420 5.00%
21 5/31/12 420 -3.45% 5/31/12 395 -5.95% 31/05/2012 6,193.82
22 6/28/12 425 1.19% 6/28/12 380 -3.80% 28/06/2012 5,789.21 -6.53%
23 7/31/12 475 11.76% 7/31/12 385 1.32% 31/07/2012 5,720.37 -1.19%
24 8/30/12 475 0.00% 8/30/12 420 9.09% 30/08/2012 5,862.56 2.49%
25 9/30/12 510 7.37% 9/30/12 520 23.81% 30/09/2012 5,982.69 2.05%
26 10/31/12 510 0.00% 10/31/12 495 -4.81% 31/10/2012 5,766.96 -3.61%
27 11/29/12 540 5.88% 11/29/12 510 3.03% 29/11/2012 5,943.94 3.07%
28 12/31/12 530 -1.85% 12/31/12 510 0.00% 31/12/2012 5,934.28 -0.16%
29 1/31/13 580 9.43% 1/31/13 570 11.76% 31/01/2013 6,245.11 5.24%
30 2/28/13 560 -3.45% 2/28/13 560 -1.75% 28/02/2013 6,463.47 3.50%
31 3/31/13 540 -3.57% 3/31/13 590 5.36% 31/03/2013 6,721.52 3.99%
32 4/30/13 590 9.26% 4/30/13 670 13.56% 30/04/2013 7,430.54 10.55%
33 5/30/13 640 8.47% 5/30/13 780 16.42% 30/05/2013 8,300.51 11.71%
34 6/30/13 600 -6.25% 6/30/13 620 -20.51% 30/06/2013 7,772.85 -6.36%
35 7/31/13 610 1.67% 7/31/13 710 14.52% 31/07/2013 8,070.17 3.83%
36 8/29/13 550 -9.84% 8/29/13 700 -1.41% 29/08/2013 7,632.57 -5.42%
37 9/30/13 590 7.27% 9/30/13 710 1.43% 30/09/2013 7,766.98 1.76%
38 10/31/13 580 -1.69% 10/31/13 710 0.00% 31/10/2013 7,946.39 2.31%
39 11/28/13 580 0.00% 11/28/13 720 1.41% 28/11/2013 7,785.48 -2.02%
40 12/31/13 550 -5.17% 12/31/13 690 -4.17% 31/12/2013 7,549.52 -3.03%
41 1/30/14 550 0.00% 1/30/14 640 -7.25% 30/01/2014 7,755.80 2.73%
42 2/27/14 550 0.00% 2/27/14 680 6.25% 24/02/2014 7,692.75 -0.81%
43 3/31/14 560 1.82% 3/31/14 760 11.76% 31/03/2014 7,572.81 -1.56%
44 4/30/14 550 -1.79% 4/30/14 800 5.26% 30/04/2014 7,407.68 -2.18%
45 5/28/14 560 1.82% 5/28/14 810 1.25% 28/05/2014 7,291.09 -1.57%
46 6/30/14 510 -8.93% 6/30/14 790 -2.47% 30/06/2014 6,971.44 -4.38%
47 7/24/14 510 0.00% 7/24/14 800 1.27% 24/07/2014 7,130.89 2.29%
48 8/31/14 530 3.92% 8/31/14 870 8.75% 31/08/2014 7,430.51 4.20%
49 9/29/14 540 1.89% 9/29/14 890 2.30% 29/09/2014 7,608.56 2.40%
Average monthly return 0.44% 1.61% 0.83%
Standard deviation 5.85% 9.93%
Coefficient of variance 13.4280 6.16249
Covariance 0.00321
Correlation 55.24%
Beta for the stock 0.7308 1.2409
Required rate of return RRR = Risk free rate + Beta for stock * (Return expected from the market – Risk free rate)
We are taking the treasury bill rate of 4.4% as Risk free rate.
We are taking the last year market reurn of 2.40% as Expected return of the market.
2.94% 1.92%
Beta of the portfolio 0.9858
Portfolio required rate of return 2.43%
We are taking the stock of both companies equal to each other in portfolio.
1.79%