Stock Research - Assignment Example

The line chart provided below supports the findings of the data. The line chart shows that FTSE 100 showed almost regular trend while the stocks of BT Group plc showed high range of volatility. The volatility of the stocks of BT Group plc were especially high during the months of February. March and May 2014. This was due to the fact that during February, 2014 , BT Group plc had a slow pace of business activities as their work of setting up phone fixed lines were hampered and pushed back up to a month due to heavy rainfall and floods in certain areas of UK.

it can be seen that the company has given for two times and the valuation of dividend as per DDM model under CAPM is 9.90 per share. BT Group plc is a company which falls in the Communications sector of industry. It extends its services to not only United kingdom but also other 170 countries across the world. It provides services such as fixed line calling, broadband, television products and even has launched itself into information technology services (networked). The main customers of the company are various multinational corporations, private domestic businesses, and various national and local governments.

It presently has a market capital of around £ 31.04 and its head quarters is situated in London.( Hargreves Lansdown, 2014) Since the analysis has not mentioned any stipulated time frame hence we consider one year as the time period of speculation. The financial year that has been selected for the analysis is financial year 2013-14. The data tables provided below shows the Risk adjusted returns of BT Group plc and FTSE 100 for the past one year 2013-14 and its comparison (Yahoo finance, 2014) It is seen that mostly BT Group plc has positive returns in comparison to the market except during three instances on the dates 3rd February 2014, 3rd March 2014 and 1st May 2014.

The line chart provided below supports the