Index representing the stock exchange of Tunisia as well as two domestic stocks

Choose the major index representing the stock exchange of your COUflt‘Y 35 well
as two domestic stocks (from two different sectors) then for these three
financial instruments:

1) Find the prices (or index levels) at December 31 for each year since 2006.
(Through Yahoo Finance!) Show them in a table with corresponding

2) Calculate annual returns on “adjusted closing price“ since 2007‘

3) Calculate average Return and Risk of each instrument.

4) Compose a portfolio (5096-5096) of the two stocks and find Risk and
Return of portfolio ( suppose the coefficient of correlation among two
stocks equal to 0.3)

5) Calculate the Beta of each stock (suppose the coefficient of correlation of
each stock with market index equal to 0.2)
6) Calculate Sharpe and Treynor ratios (suppose the risk-free rate equal to


7) if the analysts forecast an increase of 1096 of the index, what do you
expect about the increase I decrease of your tow stocks?



Sample Solution

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