Instructions
The chart below shows the price data for seven shares - A, B, C, D, E, F, and G as a candlestick plot for a particular day. The vertical axis shows the price of the share in rupees. A share whose closing price (price at the end of the day) is more than its opening price (price at the start of the day) is called a bullish share; otherwise, it is called a bearish share. All bullish and bearish shares are shown in green and red colour respectively.
Question 1.
Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). Which among the shares A, C, D and F had the highest SPV on that day?
Question Explanation
Writing down the values given in the candlestick chart in the form of a table for ease of calculation,
We are given that, Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day)
Calculating it for the four options,
Stock F: 800/1700=8/17
Stock A: 1200/2000=3/5
Stock D: 900/750=90/75=6/5
Stock C: 600/1000=3/5
Clearly Stock D has the highest SPV.
