This website uses cookies to ensure you have the best experience. Learn more

Stock Market Analysis Of Commercial Bank

1371 words - 6 pages

In this paper we will make the stock market analysis and commentary on the quotations of the Commercial Bank for the years 2007 and 2008 based on its prices in the Athens Stock Exchange.

The performance of a share is equal to the percentage difference between the initial and final property owner. The average yield value is calculated as the sum of the yield of a share to the number of returns. As far as the Commercial Bank is concerned, the average stock performance for the year 2007 was 0.28% and 2.24% for 2008. Based on the values of the general price index, the average yield for 2007 was 0.26% for 2008 and 1.95%.
We observe that for the ...view middle of the document...

0003 in 2007 and 0.005 in 2008. The corresponding figures in the general price index are 0.0005 and 0.003. We see that for 2007 as the price fluctuation of the Commercial and the overall index is very small with just over a second. Based on what mentioned above, we conclude that the risk to have less performance than expected is quite small. For 2008, we observe an increase in fluctuations of both stock and overall index, with the variation in the overall index remains higher.

The standard deviation is defined as the positive square root of variance. The standard deviation is the most important parameter of a distribution, since it has very good properties and is used as a sure measure to calculate the average deviation from the central tendency. The standard deviation in the population is: √(〖var〗^2 ) = var
It is a measure of risk calculation. The high standard deviation indicates a large number of possible paths to a share, hence high volatility and therefore risk.

The standard deviation of our stock for 2007 is 0.019 and 0.069 in 2008. For the general price index the standard deviation of 2007 are 0.022 and 0.055 in 2008. For 2007 the standard deviation of the stock is less than the overall index and therefore a lower risk. Unlike in 2008 is higher than the overall index thus shows high variability and a higher risk than the general index as well as those of 2007.

The risk factor beta (BETA) measures the sensitivity of the performance of a stock market fluctuations and gives a better measure of risk in a large stock portfolio. Statistics calculated by the method of Canonical Least Squares for time series yields and stock returns of the market portfolio. It can also be calculated by the ratio of the covariance of returns on the stock market returns on the volatility of market returns. The coefficient b (beta) or simply b is the slope of the linear regression equation between the yields and the stock market returns, ie the general index G.D.CH.A.A
The coefficients b in small companies tend to be smaller because the marketability of these companies are smaller than larger companies. .

The basic relation of calculation of factor b is below:


• is the coefficient b for the stock i
• is the covariance of return on stock i, and market performance
• is the variation in market performance

Values of beta can be characterized as follows:
B less than 0:

Negative beta price is feasible but no likely. There was the view that the very good stocks have a negative beta values, but this is not true.

B Equal to 0:

Assuming zero inflation, cash flow!

B between 0 and 1:

Investments small variation (e.g., shares utilities).

B Equal to 1:

Assign the index.

B Greater than 1:

Everything is more volatile than the index.

B much larger than 1:
Impossible, because the share is expected to fall to zero in any market downturn.


Other assignments on Stock Market Analysis Of Commercial Bank

Stock Market Bangladesh Essay

2424 words - 10 pages investment. Bangladesh Bank has locked Taka against dollar to support exports. As Taka has been undervalued it has made excess growth in money supply. Because of Bangladesh Bank’s ex-change rate policy last couple of years broad money made excess. However, a big portion of this excess liquidity had gone to the stock market but there were very few shares in the market. The policy that was adopted by Bangladesh Bank to grow economy by increased

Strategic Management Of Allied Bank Essay

3711 words - 15 pages strategy was very helpful for the purpose. [pic] Introduction to ALLIED BANK History Vision Mission Core values Strategic management SWOT analysis of ALLIED BANK Strategy formulation Implementation of strategies Evaluation of strategy Decision making Competitive strategy Corporate level strategy INTRODUCTION TO ALLIED BANK: The Bank started out in Lahore by the

An Analysis Of The Choice Between Separated And Mixed Operation Model For Icbc( London)

9211 words - 37 pages Chinese financial institutions, especially the Chinese bank industries, are destined to participate in the global economy and to face the keen competition from the "financial conglomerate" of the western developed countries. The commercial banks still operate separately at present according to the law. Being the important part of Chinese financial market, the Industrial and Commercial Bank of China (ICBC) as one of the big-four state-owned

State Bank Of India

8300 words - 34 pages khazanchee of the Bank of Bengal, to his petty-minded boss, George Udny, who guided its course.  History The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established

Case Study

540 words - 3 pages investment and sells stock usually to public through IPO. ii. Investment Bank underwriters: provide advisory financial services, make offerings to companies, underwrites the shares and introduce firm to the investors normally in the form of road shows. They help entrepreneurs in the actual process of doing IPO iii. Sell-side analysts: work at the investment bank and brokerage houses. They monitor the performance of public company, determine


2026 words - 9 pages Central Bank of the Bahamas aren’t as complex. The Central Bank is the current Official Registrar and Transfer Agent of securities for the Government, the Bahamas Mortgage Corporation, the Bridge Authority and the Clifton Heritage Authority. The Bank maintains both a primary and secondary market for the Government's local currency securities, which at present includes Treasury Bills and Registered Stock. The amount issued in any fiscal year is

Company Analysis

6691 words - 27 pages references 24 1. Introduction With the increase of trading activities within the people the banks came to play with a major importance. The below report consist of an analysis of one of the major commercial banks in Sri Lanka, which is Bank of Ceylon , popularly known as BOC. The report analyses the role and function of Financial Information within the company and the importance of carrying out a competitor analysis. In doing so the first

Statutory & Other Restrictions On Loans & Advances

4985 words - 20 pages held as security for a period not exceeding nine months. • Banks and their subsidiaries should not undertake financing of 'Badla' transactions. iii) Bank finance for Market Makers • Banks may provide need based finance to approved Market Makers subject to the various conditions, among others:- a) Market makers approved by Stock Exchanges are only eligible for finance from commercial banks; b) Market making may not only for equity but also

Busn 379 Course Project 1

789 words - 4 pages commercial and military clients worldwide. Task 1: Assessing loan options for AirJet Best Parts, Inc. The company needs to finance $8,000,000 for a new factory in Mexico. The funds will be obtained through a commercial loan and by issuing corporate bonds. Here is some of the information regarding the APRs offered by two well-known commercial banks. Bank | APR | Number of Times Compounded | National First | Prime Rate + 6.75

Stock Exchange

8645 words - 35 pages - Contents 1. Over view of market ………………………………………. pg.03 Types of financial market ▪ Money market …………………………………… pg.04 ▪ Capital market …………………………………… pg.04 Market infra structure 2. Stock exchange………………………………………………... pg.05 ▪ Introduction…………………………………….. pg.06 ▪ History………………………………………….. pg.06

Finance Study

849 words - 4 pages -free while LIBOR reflects the credit risk of lending to commercial banks. When the TED spread increases, lenders believe the risk of default on interbank loans is increasing. The 2008 financial crisis led to the failure of a number of banks in the United States. Twenty-five banks failed and were taken over by the Federal Deposit Insurance Corporation (FDIC) in 2008, while 140 failed in 2009, 157 in 2010 and 92 in 2011. A bank failure is the

Similar Documents

The Impacts Of Recruitment Practice At Commercial Bank Of Ethiopia

4308 words - 18 pages study finding. 1.4 Methodology of the Study Data for this study were derived from secondary sources: previous research and analysis of scholars, government documents, newspaper/magazines as well as journal articles that are related to the subject. This study involved an extensive literature review which critically analyzed the present status, problems and prospects of recruitment in Commercial Bank of Ethiopia. 1.5 Significance of the Study

Swot Analysis Of South Korea Market

559 words - 3 pages Name: kwong ho man Student number: 8466975 Subject:fitH07 preventing and managing sports injuries CRN: 2414 Discuss Topic is knee injury muscle strain of knee injury Muscle Knee Injury (posterior femoral muscle strain, front thigh muscles strain, torn hamstring) is any injury to the hamstring, which is located in the back of the thigh. Hamstring play a role in straightening your hips and bend your knees. If the hamstring strength is

Doc Doc, Docx, Pdf, Wps, Rtf, Odt

1805 words - 8 pages SECTOR. TODAY’S MODERN BANKS ARE NOT PROVIDING ONLY TRADITIONAL BANKING; RATHER BANKS ARE EXPANDING THE MENU OF FINANCIAL SERVICES. Banking System in Bangladesh: Historical Overview Bangladesh inherited its banking structure from the British regime and had 49 banks and other financial institutions before the Partition of India in 1947. The Dhaka Bank established in 1806 was the first commercial bank in the Bangladesh

Bank Of America Essay

5971 words - 24 pages quickly to the consumer that is on the move. SWOT ANALYSIS Strengths Banking Supermarket – Bank of America offers a vast array of products through its three main segments. One of the largest U.S. banks because of the vast array of products offered (deposits, debit and credit cards, mortgage loans, global wealth management, middle market lending, large corporate lending, global treasury services, investment banking). International – Not