Risk Analysis of Stock Market

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INTRODUCTION
Our assignment topic is “Risk analysis of Stock Market”. To identify the stock market risk we have to do some calculation. In this assignment we choose Coefficient of varience(CV) method We select five banks (Dhaka Bank Ltd., Prime Bank Ltd., Social Islami Bank Ltd., Sahjalal Bank Ltd. and Premium Bank Ltd. ) of financial institution. 1.1 History of the Stock Market of Bangladesh
Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is located in Motijheel at the heart of the Dhaka city. It was incorporated in 1954. Dhaka stock exchange is the first stock exchange of the country. As of 18 August 2010, the Dhaka Stock Exchange had over 750 listed companies with a combined market
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Step 2: To calculate the average price or mean value of each bank. Step 3: To calculate a value which comes from X-mean.
Step 4: To calculate the square value of X-mean.
Step 5: To divide the value (X-mean)^2 by (n-1)
Step 6: To find out the Root value of [{(X-mean)^2}/(n-1)] This is the value of Standard Deviation (Std.)
Step 7:To calculate the ratio between std. and mean. This is the value of CV.
Dhaka Bank: Month | Share price(TK) | _X - X | _(X - X)^2 | MAR'11 | 41.3 | -1.35 | 1.8225 | APR'11 | 39.1 | -3.55 | 12.6025 | MAY'11 | 41.4 | -1.25 | 1.5625 | JUNE'11 | 44.7 | 2.05 | 4.2025 | JULY'11 | 46.9 | 4.25 | 18.0625 | AUG'11 | 44.5 | 1.85 | 3.4225 | SEP'11 | 41.7 | -0.95 | 0.9025 | OCT'11 | 42.3 | -0.35 | 0.1225 | NOV'11 | 44.4 | 1.75 | 3.0625 | DEC'11 | 44.5 | 1.85 | 3.4225 | JAN'12 | 37.1 | -5.55 | 30.8025 | FEB'12 | 43.9 | 1.25 | 1.5625 | TotalMean Std.CV
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