Use data from hp/vesting.com to answer the following questions: a) Collect the f
ID: 1124947 • Letter: U
Question
Use data from hp/vesting.com to answer the following questions: a) Collect the following data for 20 firms of your choosing. i. Book-to-market ratio. i. Market capitalization (size). iMomentum(performance in the second half of 2016) ii.Another criterion that interests you Rank the firms based on each of the criteria separately, and divide the firms into four groups based on their ranking for each criterion. Calculate the rate of return for each group of firms since the beginning of 2017 up to now. Also calculate average monthly returns since the beginning of the year b) Do you confirm or reject any of the anomalies cited in our course? Can you uncover a new anomaly?Explanation / Answer
These are ordered in ranking order of their market capitalization
Momentum is a figure , we calulated for the last 6 months in 2017 as 2016 returns are obselete now, as market has changed a lot in Indian markets
Monthly average returns is the average value of the momentum figure
b) I confirm all anomolies in this course and as of now, i didnt uncover any new anomoly.
Sr.No Company Name Index Book to market ratio Market Capitalization (INR Crores) Momentum P/E ratio Average monthly returns 1 Reliance Industires NSE 0.07% 579481.83 46.15% 17.7 7.69% 2 Tata Consultancy Services NSE 0.09% 500423.49 5.40% 19.36 0.90% 3 HDFC Bank NSE 0.08% 471709.00 11.32% NA 1.89% 4 Hindustan Uniliver Limited NSE 0.01% 284629.00 22.22% NA 3.70% 5 ICICI Bank NSE 0.08% 197261.39 8.34% NA 1.39% 6 Larsen and Turbo NSE 0.20% 168464.00 3.89% 23.29 0.65% 7 NTPC NSE 0.08% 144955.00 7.85% NA 1.31% 8 Tata Motors NSE 0.13% 137769.68 -11.18% 13.57 -1.86% 9 SunPharamaceuticals Limited NSE 0.13% 124955.97 -0.94% 33 -0.16% 10 Asian Paints NSE 0.08% 107286.27 -2.86% 53.54 -0.48% 11 Power grid Corporation of India NSE 0.09% 106201.27 -1.46% NA -0.24% 12 Bajaj Auto NSE 0.67% 91787.22 13.62% 23.72 2.27% 13 Godrej consumer products NSE 0.11% 68582.30 8.24% 51.62 1.37% 14 Tata Steel NSE 0.57% 66936.20 35.90% 66.78 5.98% 15 Britannia Industries NSE 0.39% 58228.69 33.98% 64.09 5.66% 16 Gruh Finance NSE 0.16% 18901.88 16.35% 58.25 2.73% 17 Ajanta Pharma NSE 1.38% 12858.00 -6.23% 26.61 -1.04% 18 Crisil Limited NSE 1.04% 12663.81 -4.44% 41.05 -0.74% 19 CARE RATING NSE 4.23% 3978.00 -10.55% NA -1.76% 20 V Mart retail ltd NSE 6.16% 2425.00 18.27% 42.31 3.04%Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.