1

INTRODUCTION:
To complete the report we take 3 companies as a sample. We collect their previous financial
data then we analyze the data. We take three different companies such as-

LankaBangla finance ltd,

Prime finance & Investment ltd
Uttara finance and investment ltd.
We collect background information and historical data and other financial background
information of these companies and try to find out these companies standard deviation, their
expected return, covariance, co-relation, monthly return and weekly return. When we calculate
the standard deviation and expected return of a firm then it is easy to take the correct decision
whenever we invest or not. Best on the analysis we try to forecast for which companies we
invest.
Now we shown the companies profile:

Lanka Bangla finance ltd:

LankaBangla Finance Limited, a joint venture listed financial institution established with
multinational collaboration, started its journey in 1997. LankaBangla to be one of the most
diversified financial service providing institutions of the country. LankaBangla is the lone
financial institution which operates MasterCard & VISA card and provides third party card
processing services to different banks. There products and services are Corporate finance,
Deposit scheme, Mortgage loan, Primary Dealership, SME finance, Corporate services, Retail
finance, Stock broking through LBSL, Card operation and Merchant banking through LBIL.

Face value

10

Market lot

500

Total no of securities

189408450

Business segment

Financial institution

Last AGM date

28/03/2012

Bonus Issue

30% 2011, 55% 2010, 20% 2009, 15% 2008, 10% 2007

Right Issue

1R:1 (2012)

Listing Year

2006

Market Category

Electronic Share

Share Percentage:

Sponsor/Director 38.77 Govt.0 Institute 0 Foreign 0 Public

61.23

Net Profit After Tax (mn)

791.10

Authorized Capital in BDT*

(mn)

3000

Paid-up Capital in BDT* (mn)

1894

52 Week's Range

59.1 216

Earnings per share

9.61 (2011)

Investment Mix:

Prime finance & investment ltd:

Prime finance & investment ltd is one of the biggest financial institutions. This companys
investment in different sector as Housing, Garments & knitwear, Textile, merchant banking,
Pharmaceuticals & chemicals, Agriculture, Transport & aviation, Iron, Steel & Engineering,
Food product & processing, Trade & commerce and others.

Face value

10

Market lot

50

Total no of securities

227430403

Business segment

Financial institution

Last AGM date

28/03/2012

Bonus Issue

40% 2011, 80% 2010, 40% 2009, 40% 2008, 40% 2007,
10% 2006, 30% 2005

Right Issue

N/A

Listing Year

2005

Market Category

Electronic Share

Share Percentage:

Sponsor/Director 68.44 Govt.0 Institute12.06 Foreign 0

Public 19.50

Net Profit After Tax (mn)

672.52

Authorized Capital in BDT*

(mn)

3000

Paid-up Capital in BDT* (mn)

2274

52 Week's Range

47.3 163.9

Earnings per share

4.14 (2011)

Uttara finance and investment ltd:

Uttara Finance and Investments Limited have been operating as Financial Institution since 7
May 1995 under license from Bangladesh Bank (Central Bank). The company extends lease
finance for all types of machinery, equipment, vehicle and household durable for the purpose of
industrial, commercial and personal use in Bangladesh and allows temporary finance to its
clients within preview of the law as well as merchant banking services. The company's clientele
base is from SME to large corporate houses.

Face value

10

Market lot

50

Total no of securities

103488000

Business segment

Financial Institutions

Last AGM date

27/05/2012

Bonus Issue

40% 2011, 40% 2010, 25% 2009, 20% 2006, 10% 2004

Right Issue

1R:3 2010, 1R:1 2004

Listing Year

1997

Market Category

Electronic Share

Share Percentage
Net Profit After Tax (mn)

Sponsor/Director 33.76, Govt.0, Institutions 33.21, Foreign

0, Public 33.03
811.26 (2011)

Authorized capital in BDT* (mn)

5000

Paid-up Capital in BDT* (mn)

1035

52 Weeks Range

71-190

Earnings per share

TK. 10.97

Methodology of the report:

At this level, our primary interest is to obtain data that would accurately reflect the facts
which is helpful for our project. We are decided to collect data through primary sources as well
as secondary sources. Our objective is to collect relevant information to prepare our report.
Although for preparing this portfolio project we mainly Depends on the secondary information to
collect are required information to make the find out the real picture and take the correct
decision.

Limitation of the report:

For collect the information and prepare this assignment we face lots of problem. All the
information which is required to complete this is not easily accessible and well formatted.

Sometimes organizations are not exposing their all the financial information. This hiding
approach makes our work difficult to prepare or assignment. Also our economical condition is so
unstable or too much fluctuating that its may too much difficult to forecast the expected return
of the firm. And finally the time limitation with a heavy class schedule we did not find much
time to complete our assignment properly. In the last we say that a huge lacking in our
knowledge to complete such an assignment.

Calculation of Standard Deviations and Expected Return:

Based on Monthly Historical Data

For calculate expected return and standard deviation for the LankaBangla finance ltd, Prime
finance & Investment ltd, Uttara finance and investment ltd we take the last 25 months share
price which is collected from DSE. But there are some lack of some information like dividend.
So unable to find any Type of dividend information so we conduct our report based on the price
of the share only.

LankaBangla:

Date

Ending
Value

Ri

(Ri-R)

(Ri-R)2

28-06-2010

454.30

27-07-2010

463.10

0.01937046

-0.056786902

0.076157362

0.005799944

29-08-2010

465.30

0.004750594

-0.056786902

0.061537496

0.003786863

28-09-2010

520.30

0.11820331

-0.056786902

0.174990212

0.030621574

28-10-2010

547.00

0.051316548

-0.056786902

0.10810345

0.011686356

28-11-2010

520.60

-0.048263254

-0.056786902

0.008523648

7.26526E-05

28-12-2010

492.20

-0.054552439

-0.056786902

0.002234463

4.99282E-06

27-01-2011

436.00

-0.114181227

-0.056786902

-0.057394325

0.003294109

28-02-2011

322.40

-0.260550459

-0.056786902

-0.203763557

0.041519587

28-03-2011

238.80

-0.259305211

-0.056786902

-0.202518309

0.041013665

28-04-2011

192.00

-0.195979899

-0.056786902

-0.139192997

0.019374691

29-05-2011

167.50

-0.127604167

-0.056786902

-0.070817265

0.005015085

28-06-2011

211.50

0.262686567

-0.056786902

0.319473469

0.102063297

28-07-2011

202.20

-0.043971631

-0.056786902

0.012815271

0.000164231

25-08-2011

188.20

-0.069238378

-0.056786902

-0.012451476

0.000155039

28-09-2011

189.90

0.009032944

-0.056786902

0.065819846

0.004332252

27-10-2011

158.10

-0.167456556

-0.056786902

-0.110669654

0.012247772

28-11-2011

155.70

-0.015180266

-0.056786902

0.041606636

0.001731112

28-12-2011

168.00

0.078998073

-0.056786902

0.135784975

0.018437559

29-01-2012

140.40

-0.164285714

-0.056786902

-0.107498812

0.011555995

29-02-2012

89.40

-0.363247863

-0.056786902

-0.306460961

0.093918321

28-03-2012

78.80

-0.118568233

-0.056786902

-0.061781331

0.003816933

29-04-2012

102.80

0.304568528

-0.056786902

0.36135543

0.130577747

28-05-2012

86.50

-0.158560311

-0.056786902

-0.101773409

0.010357827

28-06-2012

82.10

-0.050867052

-0.056786902

0.00591985

3.50446E-05

-0.05678690

R (Expected Return) (Ri-R)

-0.056786902

0.55158265

(Ri-R)

0.55158265

SD() = (RiR)/(n-1)

n-1

25

24

0.1516002

Prime Finance:
Date
28-06-2010
27-07-2010
29-08-2010
28-09-2010
28-10-2010
28-11-2010
28-12-2010
27-01-2011
28-02-2011
28-03-2011
28-04-2011
29-05-2011
28-06-2011
28-07-2011
25-08-2011
28-09-2011
27-10-2011
28-11-2011
28-12-2011
29-01-2012
28-02-2012
28-03-2012
29-04-2012
28-05-2012
28-06-2012

Ending
Value
1,430.25
1,478.25
1,557.75
1,561.75
2,094.25
2,434.25
2,149.75
408.90
331.30
211.50
166.70
141.00
151.40
145.50
132.60
126.30
108.10
105.50
99.10
78.90
98.40
70.30
73.10
62.00
60.40
R

Ri
0.033560566
0.053779807
0.002567806
0.340963663
0.16234929
-0.11687378
-0.80979184
-0.18977745
-0.3616058
-0.21182033
-0.15416917
0.073758865
-0.03896962
-0.08865979
-0.04751131
-0.14410135
-0.0240518
-0.06066351
-0.20383451
0.247148289
-0.28556911
0.039829303
-0.15184679
-0.02580645
-0.08171229

R (Expected
Return)
(Ri-R)
-0.08171229

1.142816556

(Ri-R)

R
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229
-0.08171229

0.115272856
0.135492097
0.084280096
0.422675953
0.24406158
-0.03516149
-0.72807955
-0.10806516
-0.27989351
-0.13010804
-0.07245688
0.155471155
0.042742673
-0.0069475
0.034200978
-0.06238906
0.057660486
0.021048783
-0.12212222
0.328860579
-0.20385682
0.121541593
-0.0701345
0.055905838
(Ri-R)

0.013287831
0.018358108
0.007103135
0.178654961
0.059566055
0.00123633
0.530099826
0.011678079
0.078340374
0.016928102
0.005249999
0.02417128
0.001826936
4.82678E-05
0.001169707
0.003892394
0.003324732
0.000443051
0.014913837
0.10814928
0.041557601
0.014772359
0.004918847
0.003125463
1.142816556

SD() = (RiR)/(n-1)

n-1
25

(Ri-R)2

24

0.21821402

10

Uttara Finance:
Ending
Value

Date
28-06-2010
29-07-2010
29-08-2010
28-09-2010
28-10-2010
28-11-2010
28-12-2010
27-01-2011
28-02-2011
28-03-2011
28-04-2011
29-05-2011
28-06-2011
28-07-2011
25-08-2011
27-09-2011
27-10-2011
28-11-2011
28-11-2011
29-01-2012
28-02-2012
28-03-2012
28-04-2012
28-05-2012
28-06-2012

Ri

2,984.50
3,249.25
378.50
437.30
526.40
418.80
380.30
132.20
92.90
71.00
64.70
58.50
78.70
83.00
78.40
72.90
71.90
79.40
79.40
90.40
115.80
115.80
115.80
107.30
107.30
R

R (Expected
Return)

0.088708326
-0.88351158
0.155350066
0.203750286
-0.204407295
-0.091929322
-0.6523797
-0.297276853
-0.235737352
-0.088732394
-0.095826893
0.345299145
0.054637865
-0.055421687
-0.070153061
-0.013717421
0.104311544
0
0.138539043
0.280973451
0
0
-0.073402418
0
-0.05795526

(Ri-R)

-0.05795526

1.655139

-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526
-0.05795526

(Ri-R)

(Ri-R)2

0.146663586
-0.82555632
0.213305326
0.261705546
-0.146452035
-0.033974062
-0.59442444
-0.239321593
-0.177782092
-0.030777134
-0.037871633
0.403254405
0.112593125
0.002533573
-0.012197801
0.044237839
0.162266804
0.05795526
0.196494303
0.338928711
0.05795526
0.05795526
-0.015447158
0.05795526
(Ri-R)

0.02151
0.681543
0.045499
0.06849
0.021448
0.001154
0.35334
0.057275
0.031606
0.000947
0.001434
0.162614
0.012677
6.42E-06
0.000149
0.001957
0.026331
0.003359
0.03861
0.114873
0.003359
0.003359
0.000239
0.003359
1.655139

SD() = (RiR)/(n-1)

n-1
25

24

0.262610215

Calculation of Standard Deviations and Expected Return:

Based on Weekly Historical Data

11

LankaBangla
Date
08-12-2011
15-12-2011
22-12-2011
29-12-2011
05-01-2012
12-01-2012
19-01-2012
26-01-2012
02-02-2012
09-02-2012
16-02-2012
23-02-2012
01-03-2012
08-03-2012
15-03-2012
22-03-2012
29-03-2012
05-04-2012
12-04-2012
19-04-2012
26-04-2012
03-05-2012
10-05-2012
17-05-2012
24-05-2012
31-05-2012
07-06-2012
14-06-2012
21-06-2012
28-06-2012

Ending
Value

Ri

142.50
142.80
156.70
170.20
176.70
165.60
161.40
147.10
121.80
114.50
108.00
127.10
86.30
78.90
65.00
72.20
80.60
82.40
94.00
103.00
106.60
106.30
97.90
96.00
91.00
89.20
89.70
85.70
78.00
82.10
R

R (Expected
Return)
-0.01297326

0.002105263
0.097338936
0.086151883
0.038190364
-0.06281834
-0.02536232
-0.08859975
-0.17199184
-0.05993432
-0.05676856
0.176851852
-0.32100708
-0.08574739
-0.17617237
0.110769231
0.11634349
0.022332506
0.140776699
0.095744681
0.034951456
-0.00281426
-0.07902164
-0.01940756
-0.05208333
-0.01978022
0.005605381
-0.04459309
-0.08984831
0.052564103
-0.01297326

(Ri-R)
0.3141255

(Ri-R)2

(Ri - R)

R
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326
-0.01297326

0.015078523
0.110312196
0.099125143
0.051163624
-0.049845076
-0.012389059
-0.075626492
-0.159018582
-0.046961059
-0.043795299
0.189825112
-0.308033821
-0.072774133
-0.16319911
0.123742491
0.12931675
0.035305766
0.153749959
0.108717941
0.047924716
0.010159001
-0.066048377
-0.006434299
-0.039110073
-0.00680696
0.018578641
-0.031619828
-0.076875048
0.065537363
(Ri-R)

SD() = (RiR)/(n-1)

n-1
30

0.000227362
0.01216878
0.009825794
0.002617716
0.002484532
0.000153489
0.005719366
0.02528691
0.002205341
0.001918028
0.036033573
0.094884835
0.005296074
0.02663395
0.015312204
0.016722822
0.001246497
0.02363905
0.011819591
0.002296778
0.000103205
0.004362388
4.14002E-05
0.001529598
4.63347E-05
0.000345166
0.000999814
0.005909773
0.004295146
0.314125517

29

0.1040765

12

Prime Finance:
Date

Ending
Value

08-12-2011
15-12-2011
22-12-2011
29-12-2011
05-01-2012
12-01-2012
19-01-2012
26-01-2012
02-02-2012
09-02-2012
16-02-2012
23-02-2012
01-03-2012
08-03-2012
15-03-2012
22-03-2012
29-03-2012
05-04-2012
12-04-2012
19-04-2012
26-04-2012
03-05-2012
10-05-2012
17-05-2012
24-05-2012
31-05-2012
07-06-2012
14-06-2012
21-06-2012
28-06-2012

R (Expected
Return)

Ri

96.90
94.70
99.80
98.40
110.50
99.70
98.70
87.50
65.30
64.30
79.90
81.20
89.90
57.50
59.00
63.70
71.50
78.30
84.30
83.90
77.80
75.30
74.10
67.80
64.70
65.90
64.00
61.30
55.20
60.40
R

-0.022703818
0.053854277
-0.014028056
0.12296748
-0.097737557
-0.01003009
-0.113475177
-0.253714286
-0.015313936
0.242612753
0.016270338
0.107142857
-0.360400445
0.026086957
0.079661017
0.12244898
0.095104895
0.076628352
-0.004744958
-0.072705602
-0.032133676
-0.015936255
-0.085020243
-0.045722714
0.018547141
-0.028831563
-0.0421875
-0.099510604
0.094202899
-0.008919605

(Ri-R)

-0.008919605 0.37863812

(Ri - R)

R
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605
-0.008919605

n-1
30

-0.01378421
0.062773882
-0.00510845
0.131887085
-0.08881795
-0.00111049
-0.10455557
-0.24479468
-0.00639433
0.251532358
0.025189943
0.116062462
-0.35148084
0.035006562
0.088580622
0.131368585
0.1040245
0.085547957
0.004174647
-0.063786
-0.02321407
-0.00701665
-0.07610064
-0.03680311
0.027466746
-0.01991196
-0.0332679
-0.090591
0.103122504
(Ri-R)

(Ri-R)2
0.000190005
0.00394056
2.60963E-05
0.017394203
0.007888629
1.23318E-06
0.010931868
0.059924436
4.08875E-05
0.063268527
0.000634533
0.013470495
0.123538781
0.001225459
0.007846527
0.017257705
0.010821097
0.007318453
1.74277E-05
0.004068653
0.000538893
4.92334E-05
0.005791307
0.001354469
0.000754422
0.000396486
0.001106753
0.008206729
0.010634251
0.378638118

SD() = (RiR)/(n-1)
29
0.114265

13

Uttara Finance:
Date

Ending Value

08-12-2011
15-12-2011
22-12-2011
29-12-2011
05-01-2012
12-01-2012
19-01-2012
26-01-2012
02-02-2012
09-02-2012
16-02-2012
23-02-2012
01-03-2012
08-03-2012
15-03-2012
22-03-2012
29-03-2012
05-04-2012
12-04-2012
19-04-2012
25-04-2012
03-05-2012
10-05-2012
17-05-2012
24-05-2012
31-05-2012
07-06-2012
14-06-2012
21-06-2012
28-06-2012

109.5000
107.9000
116.1000
114.2000
129.1000
116.3000
111.3000
100.3000
78.1000
76.8000
92.1000
95.0000
109.3000
109.5000
112.5000
118.4000
130.3000
149.7000
166.4000
177.5000
174.6000
121.1000
119.2000
113.2000
113.1000
112.5000
112.6000
108.4000
99.4000
107.3000
R

R (Expected
Return)

(Ri-R)

0.0052

0.3214

Ri
-0.0146
0.0760
-0.0164
0.1305
-0.0991
-0.0430
-0.0988
-0.2213
-0.0166
0.1992
0.0315
0.1505
0.0018
0.0274
0.0524
0.1005
0.1489
0.1116
0.0667
-0.0163
-0.3064
-0.0157
-0.0503
-0.0009
-0.0053
0.0009
-0.0373
-0.0830
0.0795
0.0052

(Ri-R)2

(Ri - R)

R
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100
0.0100

-0.0246
0.0660
-0.0264
0.1205
-0.1091
-0.0530
-0.1088
-0.2313
-0.0266
0.1892
0.0215
0.1405
-0.0082
0.0174
0.0424
0.0905
0.1389
0.1016
0.0567
-0.0263
-0.3164
-0.0257
-0.0603
-0.0109
-0.0153
-0.0091
-0.0473
-0.0930
0.0695
(Ri-R)

SD () = (RiR)/(n-1)

n-1

30

29

Calculation of Covariance and Correlation:

Based on Monthly Historical Data

0.0006
0.0044
0.0007
0.0145
0.0119
0.0028
0.0118
0.0535
0.0007
0.0358
0.0005
0.0197
0.0001
0.0003
0.0018
0.0082
0.0193
0.0103
0.0032
0.0007
0.1001
0.0007
0.0036
0.0001
0.0002
0.0001
0.0022
0.0087
0.0048
0.3214

0.1053

14

LankaBangla with Prime Finance

Date

Stock A (Lanka Bangla)

28-06-2010

(Ril-Rl)

Stock B (Prime Finance)

(Rip-Rp)

(Ril-Rl)*(Rip-Rp)

27-07-2010

0.076157362

0.115272856

0.008778877

29-08-2010

0.061537496

0.135492097

0.008337844

28-09-2010

0.174990212

0.084280096

0.014748192

28-10-2010

0.10810345

0.422675953

0.045692729

28-11-2010

0.008523648

0.24406158

0.002080295

28-12-2010

0.002234463

-0.03516149

-7.8567E-05

27-01-2011

-0.057394325

-0.728079546

0.041787634

28-02-2011

-0.203763557

-0.108065162

0.022019742

28-03-2011

-0.202518309

-0.279893505

0.056683559

28-04-2011

-0.139192997

-0.130108041

0.018110128

29-05-2011

-0.070817265

-0.072456876

0.005131198

28-06-2011

0.319473469

0.155471155

0.049668909

28-07-2011

0.012815271

0.042742673

0.000547759

25-08-2011

-0.012451476

-0.006947504

8.65067E-05

28-09-2011

0.065819846

0.034200978

0.002251103

27-10-2011

-0.110669654

-0.062389056

0.006904575

28-11-2011

0.041606636

0.057660486

0.002399059

28-12-2011

0.135784975

0.021048783

0.002858108

29-01-2012

-0.107498812

-0.122122221

0.013127994

29-02-2012

-0.306460961

0.328860579

-0.100782929

28-03-2012

-0.061781331

-0.203856816

0.012594545

29-04-2012

0.36135543

0.121541593

0.043919715

28-05-2012

-0.101773409

-0.070134495

0.007137827

28-06-2012

0.00591985

0.055905838

0.000330954

(Ril-Rl)*(Rip-Rp)
n
Coveriance(AB)

0.264335757
24
0.01101399

Standard Deviation A

0.1516002

Standard Deviation B

0.21821402

Standard Deviation A * Standard Deviation B

0.033081289

Correlation (AB)

0.332937143

15

Prime Finance with Uttara Finance:

Date

Stock B (Prime
Finance)

28-06-2010

Stock C (Uttara Finance)

(Rip-Rp)

(Riu-Ru)

(Rip-Rp)*(Riu-Ru)

27-07-2010

0.115272856

0.146663586

0.016906331

29-08-2010

0.135492097

-0.82555632

-0.111856357

28-09-2010

0.084280096

0.213305326

0.017977393

28-10-2010

0.422675953

0.261705546

0.110616641

28-11-2010

0.24406158

-0.146452035

-0.035743315

28-12-2010

-0.03516149

-0.033974062

0.001194579

27-01-2011

-0.728079546

-0.59442444

0.432788277

28-02-2011

-0.108065162

-0.239321593

0.025862327

28-03-2011

-0.279893505

-0.177782092

0.049760053

28-04-2011

-0.130108041

-0.030777134

0.004004353

29-05-2011

-0.072456876

-0.037871633

0.00274406

28-06-2011

0.155471155

0.403254405

0.062694428

28-07-2011

0.042742673

0.112593125

0.004812531

25-08-2011

-0.006947504

0.002533573

-1.7602E-05

28-09-2011

0.034200978

-0.012197801

-0.000417177

27-10-2011

-0.062389056

0.044237839

-0.002759957

28-11-2011

0.057660486

0.162266804

0.009356383

28-12-2011

0.021048783

0.05795526

0.001219888

29-01-2012

-0.122122221

0.196494303

-0.023996321

29-02-2012

0.328860579

0.338928711

0.111460292

28-03-2012

-0.203856816

0.05795526

-0.011814575

29-04-2012

0.121541593

0.05795526

0.007043975

28-05-2012

-0.070134495

-0.015447158

0.001083379

28-06-2012

0.055905838

0.05795526

0.003240037

(Rip-Rp)*(Riu-Ru)
n
Covariance(BC)

0.676159622
24
0.028173318

Standard Deviation B

0.21821402

Standard Deviation C

0.262610215

Standard Deviation B * Standard Deviation C

0.057305231

Correlation (BC)

0.491636056

16

Uttara Finance with LankaBangla:

Date

Stock C (Uttara Finance)

(Riu-Ru)
0.146663586
-0.82555632
0.213305326
0.261705546
-0.146452035
-0.033974062
-0.59442444
-0.239321593
-0.177782092
-0.030777134
-0.037871633
0.403254405
0.112593125
0.002533573
-0.012197801
0.044237839
0.162266804
0.05795526
0.196494303
0.338928711
0.05795526
0.05795526
-0.015447158
0.05795526

28-06-2010
27-07-2010
29-08-2010
28-09-2010
28-10-2010
28-11-2010
28-12-2010
27-01-2011
28-02-2011
28-03-2011
28-04-2011
29-05-2011
28-06-2011
28-07-2011
25-08-2011
28-09-2011
27-10-2011
28-11-2011
28-12-2011
29-01-2012
29-02-2012
28-03-2012
29-04-2012
28-05-2012
28-06-2012

Stock A (Lanka Bangla)

(Ril-Rl)
0.076157362
0.061537496
0.174990212
0.10810345
0.008523648
0.002234463
-0.057394325
-0.203763557
-0.202518309
-0.139192997
-0.070817265
0.319473469
0.012815271
-0.012451476
0.065819846
-0.110669654
0.041606636
0.135784975
-0.107498812
-0.306460961
-0.061781331
0.36135543
-0.101773409
0.00591985

(Riu-Ru) * (Ril-Rl)
0.011169512
-0.050802669
0.037326344
0.028291272
-0.001248306
-7.59138E-05
0.03411659
0.048765019
0.036004129
0.004283962
0.002681965
0.128829084
0.001442911
-3.15467E-05
-0.000802857
-0.004895786
0.006751376
0.007869454
-0.021122904
-0.103868419
-0.003580553
0.020942448
0.00157211
0.000343086

(Riu-Ru) * (Ril-Rl)
n
Covariance(CA)
Standard Deviation C
Standard Deviation A
Standard Deviation C * Standard Deviation A
Correlation (CA)

Calculation of Covariance and Correlation:

Based on Weekly Historical Data

0.183960307
24
0.007665013
0.262610215
0.1516002
0.039811761
0.192531367

17

LankaBangla with Prime Finance:

Date

Stock A (Lanka
Stock B (Prime Finance)
Bangla)
08-12-2011
(Ril-Rl)
(Rip-Rp)
15-12-2011
0.015078523
-0.013784213
22-12-2011
0.110312196
0.062773882
29-12-2011
0.099125143
-0.005108451
05-01-2012
0.051163624
0.131887085
12-01-2012
-0.049845076
-0.088817952
19-01-2012
-0.012389059
-0.001110485
26-01-2012
-0.075626492
-0.104555572
02-02-2012
-0.159018582
-0.244794681
09-02-2012
-0.046961059
-0.006394331
16-02-2012
-0.043795299
0.251532358
23-02-2012
0.189825112
0.025189943
01-03-2012
-0.308033821
0.116062462
08-03-2012
-0.072774133
-0.35148084
15-03-2012
-0.16319911
0.035006562
22-03-2012
0.123742491
0.088580622
29-03-2012
0.12931675
0.131368585
05-04-2012
0.035305766
0.1040245
12-04-2012
0.153749959
0.085547957
19-04-2012
0.108717941
0.004174647
26-04-2012
0.047924716
-0.063785997
03-05-2012
0.010159001
-0.023214071
10-05-2012
-0.066048377
-0.00701665
17-05-2012
-0.006434299
-0.076100638
24-05-2012
-0.039110073
-0.036803109
31-05-2012
-0.00680696
0.027466746
07-06-2012
0.018578641
-0.019911958
14-06-2012
-0.031619828
-0.033267895
21-06-2012
-0.076875048
-0.090590999
28-06-2012
0.065537363
0.103122504
(Ril-Rl)*(Rip-Rp)
n
Covariance(AB)
Standard Deviation A
Standard Deviation B
Standard Deviation A * Standard Deviation B
Correlation (AB)

(Ril-Rl)*(Rip-Rp)
-0.000207846
0.006924725
-0.000506376
0.006747821
0.004427138
1.37579E-05
0.007907171
0.038926903
0.000300285
-0.011015935
0.004781684
-0.035751164
0.025578713
-0.00571304
0.010961187
0.016988158
0.003672665
0.013152995
0.000453859
-0.003056926
-0.000235832
0.000463438
0.000489654
0.001439372
-0.000186965
-0.000369937
0.001051925
0.006964187
0.006758377
0.100959996
29
0.003481379
0.1040765
0.114265
0.011892301
0.292742262

18

Prime Finance with Uttara Finance:

Date

Stock B (Prime Finance)

(Rip-Rp)
08-12-2011
15-12-2011
-0.013784213
22-12-2011
0.062773882
29-12-2011
-0.005108451
05-01-2012
0.131887085
12-01-2012
-0.088817952
19-01-2012
-0.001110485
26-01-2012
-0.104555572
02-02-2012
-0.244794681
09-02-2012
-0.006394331
16-02-2012
0.251532358
23-02-2012
0.025189943
01-03-2012
0.116062462
08-03-2012
-0.35148084
15-03-2012
0.035006562
22-03-2012
0.088580622
29-03-2012
0.131368585
05-04-2012
0.1040245
12-04-2012
0.085547957
19-04-2012
0.004174647
26-04-2012
-0.063785997
03-05-2012
-0.023214071
10-05-2012
-0.00701665
17-05-2012
-0.076100638
24-05-2012
-0.036803109
31-05-2012
0.027466746
07-06-2012
-0.019911958
14-06-2012
-0.033267895
21-06-2012
-0.090590999
28-06-2012
0.103122504
(Rip-Rp)*(Riu-Ru)
n
Covariance(BC)
Standard Deviation B
Standard Deviation C
Standard Deviation B * Standard Deviation C
Correlation (BC)

Stock C (Uttara Finance)

(Riu-Ru)
-0.024611872
0.065996293
-0.026365202
0.120472855
-0.109147947
-0.052992261
-0.108831986
-0.231335992
-0.026645327
0.18921875
0.021487514
0.140526316
-0.008170174
0.01739726
0.042444444
0.090506757
0.138887183
0.101556446
0.056706731
-0.026338028
-0.316414662
-0.025689513
-0.06033557
-0.010883392
-0.01530504
-0.009111111
-0.047300178
-0.09302583
0.069476861

(Rip-Rp)*(Riu-Ru)
0.000339255
0.004142843
0.000134685
0.015888814
0.009694297
5.88471E-05
0.011378991
0.05662982
0.000170379
0.047594638
0.000541269
0.01630983
0.00287166
0.000609018
0.003759755
0.011889745
0.01444767
0.008687947
0.000236731
0.001679997
0.007345272
0.000180254
0.004591575
0.000400543
-0.00042038
0.00018142
0.001573577
0.008427303
0.007164628
0.236510385
29
0.008155531
0.114265
0.1053
0.012032105
0.677814136

19

Uttara Finance with LankaBangla:

Date

Stock C (Uttara
Finance)
(Riu-Ru)
-0.024611872
0.065996293
-0.026365202
0.120472855
-0.109147947
-0.052992261
-0.108831986
-0.231335992
-0.026645327
0.18921875
0.021487514
0.140526316
-0.008170174
0.01739726
0.042444444
0.090506757
0.138887183
0.101556446
0.056706731
-0.026338028
-0.316414662
-0.025689513
-0.06033557
-0.010883392
-0.01530504
-0.009111111
-0.047300178
-0.09302583
0.069476861

08-12-2011
15-12-2011
22-12-2011
29-12-2011
05-01-2012
12-01-2012
19-01-2012
26-01-2012
02-02-2012
09-02-2012
16-02-2012
23-02-2012
01-03-2012
08-03-2012
15-03-2012
22-03-2012
29-03-2012
05-04-2012
12-04-2012
19-04-2012
26-04-2012
03-05-2012
10-05-2012
17-05-2012
24-05-2012
31-05-2012
07-06-2012
14-06-2012
21-06-2012
28-06-2012
(Riu-Ru) * (Ril-Rl)
n
Covariance (CA)
Standard Deviation C
Standard Deviation A
Standard Deviation C * Standard Deviation A
Correlation (CA)

Stock A (Lanka
Bangla)
(Ril-Rl)
0.015078523
0.110312196
0.099125143
0.051163624
-0.049845076
-0.012389059
-0.075626492
-0.159018582
-0.046961059
-0.043795299
0.189825112
-0.308033821
-0.072774133
-0.16319911
0.123742491
0.12931675
0.035305766
0.153749959
0.108717941
0.047924716
0.010159001
-0.066048377
-0.006434299
-0.039110073
-0.00680696
0.018578641
-0.031619828
-0.076875048
0.065537363

(Riu-Ru) * (Ril-Rl)
-0.000371111
0.007280196
-0.002613454
0.006163828
0.005440488
0.000656524
0.008230581
0.036786721
0.001251293
-0.008286892
0.00407887
-0.043286858
0.000594577
-0.002839217
0.005252181
0.01170404
0.004903518
0.015614299
0.006165039
-0.001262243
-0.003214457
0.001696751
0.000388217
0.00042565
0.000104181
-0.000169272
0.001495623
0.007151365
0.00455333
0.06789377
29
0.002341164
0.1053
0.1040765
0.010959255
0.213624411

Calculation of Beta (): Based on Monthly Historical Data