Premium Essay

Stock Wipro

In: Business and Management

Submitted By neilrego
Words 416
Pages 2
Wipro Ltd is a global information technology, consulting and outsourcing company with 170,000+ workforce serving clients in 175+ cities across 6 continents. The company posted revenues of $7.6 billion for the financial year ended Mar 31, 2015. Industry Name | Computers - Software | House Name | Wipro Group | Year Of Incorporation | 1945 |

Average monthly Return
On average if one invests for a month ,it is likely to get a return of 0.7% based historic data for 10 years.
It is useful for active investors
Geometric mean geometric mean for 120 months is 0.158% means that when a invester Wipro Stock price grows at 0.158% compounded monthly for 120 months.
(1+0.158%)^120 = 1.2085 which is also the 10 year holding returns
Standard deviation
Since Wipro is a blue chip company ,it is likely to have less volatility in the (average yearly standard deviation = 9.436%)
Standard deviation of the monthly returns is 10.24%
Therefore there is 99.7% confidence that the monthly returns will fall between (-30% to 31.4%
Holding period returns
It is for passive investors who invest it and then withdraw it after a year . 10 year golding period return is 20.84% .

Compounded annual growth rate:
The compounded annual growth rate of Wipro over 10 year period is 1.91% representing the smoothed annualized gain you earned over your investment.
It gives broader view of the growth rate of the company over a period of 10 years.

Since the Beta value of Wipro is less than 1 , its unsystematic risk will be greater than systematic risk . Also it’s a defensive stock .
Since the Beta value is 0.728, it's theoretically 27.2% less volatile than the market.
It is advisable stock to a risk averse investor.

Risk of the stock * Systematic risk=0.00259 * Unsystematic risk=0.00787
Since Unsystematic risk is greater than...

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