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ANALYSIS OF RISK AND

RETURN OF STOCKS
AND A TWO STOCK
PORTFOLIO

INTRODUCTION TO BUSINESS
FINANCE

MCB & HBL
KSE -100

AAQIB NAZIMUDDIN
BILAL MEHDI
AHSAN AKBAR

40 55 40 0 57 40 8 60 40 6 63 40 4 66 40 2 69 40 0 71 40 8 74 40 6 77 40 4 80 40 2 83 40 0 85 40 7 88 40 6 91 40 4 94 40 2 97 40 0 99 41 8 02 41 6 05 41 4 08 41 2 11 41 0 13 7 SHARE PRICES MCB.HBL 300 250 200 MCB 150 HBL 100 50 0 KSE-100 SHARE PRICES FOR MCB & HBL SHARE PRICES DATESDATE 07-Jan- MCB HBL 225.9 KSE100 12389.99 124. .

21 11464.9 5 120.1 4 127.43 175.5 8 117.95 168.41 116. 09 11525.98 173. 21 11353.8 8 107.27 147.0 6 110.5 1 121.7 3 125.08 216.3 152. 05 11937.8 198.23 195. 37 12057.73 154.7 9 115.15 170.05 202.7 7 116. 25 11561. 52 12476. 03 12045. 58 11286. 77 12190.2 216.1 6 116.57 200.84 173. 52 12000.7 DATE 230. 97 11853.1 6 124. 61 11028. 35 11943. 23 11954.9 2 112.43 123.8 4 108.31 147.1 117. 38 12225.9 167.1 5 123.8 7 120.0 3 17 MCB HBL 201.11 14-Jan11 21-Jan11 28-Jan11 04-Feb11 11-Feb11 18-Feb11 25-Feb11 04-Mar11 11-Mar11 18-Mar11 25-Mar11 01-Apr11 08-Apr11 15-Apr11 22-Apr11 29-Apr11 06-May11 13-May11 20-May11 27-May11 03-Jun11 10-Jun11 17-Jun11 24-Jun11 01-Jul- 9 04 11 243.91 167.66 208. 67 11957.65 215.4 3 116. 12 12346.8 3 112. 77 12361.78 176. 64 11905.5 9 117. 66 12377.72 204.0 4 121.0 6 121.05 117. 82 10901.8 2 124. 81 11648. 34 12041. 7 12415.8 207.27 170.35 126.38 200. 14 11372.3 7 122.07 204.82 117. 61 11552. 86 11761.6 . 13 11885.85 155.3 6 117.41 160.2 2 116. 04 10879.5 7 114.5 4 115. 35 11973.53 207.7 5 122.83 207. 3 11969.5 4 115. 54 11879.9 2 115.5 7 117.3 6 118.99 202. 84 11988. 52 12236.3 3 121.2 5 122. 91 12462. 54 12431. 37 11375.89 159. 15 11223.64 203. 08-Jul11 15-Jul11 22-Jul11 29-Jul11 05-Aug11 12-Aug11 19-Aug11 25-Aug11 30-Aug11 09-Sep11 16-Sep11 23-Sep11 30-Sep11 07-Oct11 14-Oct11 21-Oct11 28-Oct11 04-Nov11 10-Nov11 18-Nov11 25-Nov11 02-Dec11 09-Dec11 16-Dec- 229. 87 11684.79 210.4 9 119. 26 12484.5 6 116.3 3 105. 25 11606.2 205.28 207.48 225.0 1 116.95 137. 96 11967.8 233.8 6 117.06 174.18 176. 76 11070.7 12533. 32 12464.65 197.2 8 118. 199.9 8 120 KSE100 12390.32 123.1 2 118.35 203.7 4 129.4 186. 09 11262.77 160. 46 11606.

78 13925.2 5 109.03 188.9 4 122.21 184. 97 13558. 66 11125. 8 13730.5 4 112. 28 14230.5 6 120.09 188.9 171. of KSE 100 Index.1 8 103. 18 15391. 48 14042.88 161.7 11301.4 186.8 3 110.33 167.6 106.1 5 110.11 23-Dec11 30-Dec11 06-Jan12 13-Jan12 20-Jan12 27-Jan12 03-Feb12 10-Feb12 17-Feb12 24-Feb12 02-Mar12 09-Mar12 16-Mar12 22-Mar12 30-Mar12 06-Apr12 13-Apr12 20-Apr12 27-Apr12 6 14 139.8 1 103. 29 13761.9 8 14612.4 2 04-May12 11-May12 18-May12 25-May12 01-Jun12 08-Jun12 15-Jun12 22-Jun12 29-Jun12 06-Jul12 13-Jul12 20-Jul12 27-Jul12 03-Aug12 10-Aug12 16-Aug12 24-Aug12 31-Aug12 180. 76 13875.31 180. as a result have also been higher as compared to HBL volumes in the stock market. 62 12231. 53 13799.75 166. 58 As it is visible from the stock profile dating January 2011 to August 2012. 97 13352.8 167.1 178.48 173.09 175. 68 12706. 49 14526.0 2 121.8 148. 08 15039.8 7 114.46 181. the share prices reach a maximum level of .49 158.63 183. 68 11960. The volumes. We can see that from January 2011 to July 2011.4 9 114. 22 11982. 46 11774. 74 13297.9 107.99 171. 12 13273.0 8 112. 06 13876. the share prices for MCB range between 200 and 230 whereas for HBL.83 107.2 9 107.02 187.4 9 118. 52 13088.8 134.49 178. 41 14310. MCB has an upper hand on the stock prices as compared to HBL stock prices.07 178. 43 13936. 6 12495.3 7 111. 7 13665.4 1 106.5 3 117.81 163. 18 14332.8 6 116. 49 15000. 77 144.45 183.8 4 114.6 1 115. 41 14676.54 111.24 179.2 2 106.39 116. 09 11347.8 1 113.68 163. 29 14564.8 2 116.8 8 118.4 5 112.0 3 113.06 159. 49 13857.8 174. 82 13801.7 5 116. 35 11014.7 3 114.0 8 108.61 185.5 4 111.1 1 108.8 9 100.44 173.96 160. 43 14761.25 179.42 174.98 169.

80% 8 7.92% 0.07% 1.09% 16 1.05% .21% 10. Even as a result of this instability.17% 0.85% 1.25% -0.72% 7.78% 0.29% 0.38% 0.35% 1.64% -0.83% 5.62 % 1.02% 0.47% 2.16% 0.31% 3 4 5 6 7 12 13 15 0. Compared to the KSE 100 Index points.01% 15. it goes to show that MCB has been more successful in doing business in the stock market as compared to HBL.36% 17 2.82% -6.74% 0.03% 1.37% 2.09% 1. MCB manages to keep its share prices comparatively higher as compared to share prices from HBL.89% 0.26% 2.35% 1. From July 2011 onwards.98% 11 9.54% 9.67% -3.53% 11.86% -1.65% 3.10% 8. the trade that has taken place for both the companies have been relatively lower but taking a more in-depth analysis of the volumes traded for both the companies.03% 10 3.86% 0.84% 0.33% 2.47% 0.20% 1.127.26 % 2.46% 14 18 19 0.98% -1.79% 6. This is due to the prevailing political instability in the country.44% 1. WEEKLY RETURNS WEEK S 1 2 MCB HBL KSE-100 1.17% -0.68% 5. the share prices for both the companies have steadily declined.04 % 4.51% 6.86% 2.38% -3.58% 1.81% 9 4.

RETURNS 3.91% 42 1.92% 2.95% 0.72% 1.22% 2.55% 1.67% 0.15% 0.11% 0.06% 43 0.62% 2.43% .20% 0.91% WEEK MCB HBL KSE-100 S 44 2.11% 2.77% 1.16% -0.07% 0.35% 1.72% 1.23% 0.54% 3.49% 40 1.11% -2.83% 0.03% 0.56% 41 -3.30% 0.31% 1.13% 5.95% 1.15% -0.59% .99% -3.02% 0.34% 4.55% 2.86% 4.10% 45 -0.33% 39 0.20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 1.98% 0.94% 1.03% 3.08% 1.32% 3.39% 0.56% 46 -2.13% 1.48% 1.13% 0.61% 37 1.60% 0.05% -6.65% 38 0.08% 2.10% 0.69% -0.36% 0.66% 4.03% 0.78% 1.03% 2.73% 1.83% 1.69% 2.02% 1.86% 0.34% 0.20% 1.26% 0.96% 2.64% 1.75% -0.09% 1.98% 3.11% 0.78% 0.42% WEEKLY 1.56% 6.

95% 3.58% 0.07% 10.98% 3.09% 1.91% 4.57% 0.92% 1.01% 1.08% 2.62% 0.96% -1.16% 1.05% 2.60% 2.76% 4.90% 1.24% 2.68% 1.04% -2.54% 1.13% 1.05% 5.06% -2.99% 1.87% 2.02% 1.46% 52 53 7.09% 3.19% 2.63% 1.69% 1.79% 2.60% 2.56 % 3.37% 0.48% 0.05% 5.03% 3.47 48 49 4.58% 2.82% 3.99% 0.81% 2.18% 4.00% 6.75% 4.31% 59 4.02% -0.15% -0.37% 2.61% -2.69% 1.54% 2.68% 0.25% 54 55 56 57 58 7.83% 50 51 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 10.40% 3.54% 1.44% 7.39% 12.83% 0.41% 3.29% .41% 3.60 % 0.55% 2.81% -3.82% 0.35% 0.35% -2.31% 0.29% 0.42% -0.90% 0.49% -0.74% 7.93% 0.05% 2.41% -1.35% 0.82 % 0.26% 2.18% 3.24% 5.93% 4.79% 8.

54% 2.15% 1.97% 0.10% 1.83% 0.51% 3.34% 1.62% -0.26% .63% 0.78% 5.23% 4.44% 0.03% 0.75 76 77 78 79 80 81 82 83 84 85 86 1.62% 1.26% 0.61% 2.91% 0.79% 0.26% 1.69% 0.48% 0.15% 1.38% 2.21% 0.55% 1.50% 2.11% 2.58% 0.93% 1.58% 1.15% 2.43% 1.48% 3.78% 7.93% 4.