STA1101 Quantitative Methods Individual Assignment 2026 | INTI

STA1101 Individual Assignment (20%)

Assignment Questions

1. Introduction

You are working as a financial analyst tasked with analysing TWO (2) listed companies on Bursa Malaysia against the FTSE Bursa Malaysia KLCI (KLSE) index. The objective is to apply quantitative methods, including descriptive statistics, hypothesis testing, confidence intervals, and regression analysis, to evaluate stock performance and provide a recommendation to potential investors.

2. Data Source & Stock Selection

All historical weekly share price data must be downloaded from Investing.com. The data period is from 1 January 2021 to 31 December 2025, using weekly frequency.

2.1 How to Download Data from Investing.com

1. Go to https://www.investing.com/equities/malaysia
2. Click on the correct result under ‘Stocks – Malaysia’.
3. Go to the ‘Historical Data’ tab on the stock’s page.
4. Set the date range: 01/01/2021 to 31/12/2025.
5. Set frequency to: Weekly.
6. Click the Download button (spreadsheet icon). A CSV file will be saved.
7. Repeat for your second stock and for the KLCI index (search ‘FTSE Bursa Malaysia KLCI’).

2.2 Stock Selection Based on Student ID

Each student must select TWO (2) companies based on the last two digits of their Student ID. The second-to-last digit determines Company A; the last digit determines Company B. Refer to Table 1 below.

Example:

If two different digits:

 If your Student ID ends in …37, then Company A = Digit 3 = Tenaga Nasional Berhad, and Company B = Digit 7 = Hong Leong Bank Berhad.

If two same digits

If your Student ID ends in …33, then Company A = Digit 3 = Tenaga Nasional Berhad, and Company B = Digit 4 = IHH Healthcare Berhad.

Table 1: Company List for Stock Selection

Note: The FTSE Bursa Malaysia KLCI (KLSE) is used by all students as the market benchmark (index).

3. Questions

Answer ALL questions below. Use Microsoft Excel to perform all calculations. All solutions must be typed and presented neatly in your written report.

Question 1

Calculate the measure of central tendency (mean, median, mode), measure of dispersion (variance, standard deviation), maximum, minimum, and skewness of the weekly stock price for each of your two (2) selected stocks and the KLCI index.

(6 marks)

Question 2

Construct a 95% confidence interval for the true population mean weekly stock prices for each of your two (2) selected stocks. Show all working steps, including the margin of error calculation. Present your results clearly.

(10 marks)

Question 3

Your manager makes the following claims about the average weekly stock prices. Test each claim at the 5% significance level.

Compute the claim value according to your respective company’s selection. Round your answer to 2 decimal places.

Example:

Company A:  Mean (from Q1) = 8.25

• Then the claim will be: Average weekly price > RM8.09

Company B:  Mean (from Q1) = 10.5

• Then the claim will be: Average weekly price > RM10.29

For each stock, clearly state:

a. The null and alternative hypotheses (H₀ and H₁)
b. The critical value at α = 0.05
c. The test statistic
d. Your conclusion and interpretation in context

(14 marks)

Question 4

A trader claims that Company A has a higher average weekly stock price compared to Company B. Test this claim at the 1% significance level using an appropriate two-sample hypothesis test. Clearly state your hypotheses, critical value, test statistic, and conclusion.

(7 marks)

Question 5

Using the KLCI index as your market benchmark, perform a simple linear regression analysis of each stock’s weekly stock price against the KLCI weekly stock price. For each stock, determine and report:

(i) Alpha (α) – the intercept coefficient

(ii) Beta (β) – the slope coefficient (sensitivity to market)

(iii) The least squares regression equation: 𝑦_{𝑠𝑡𝑜𝑐𝑘} =𝛼+𝛽𝑥_{𝐾𝐿𝐶𝐼}

(iv) The coefficient of determination (𝑅²) and its meaning

(v) A written explanation of what your alpha and beta values indicate about each stock’s price behaviour relative to the market

(10 marks)

Question 6

Write a brief conclusion and reflection based on your findings from Questions 1–5. Your response should include:

(i) A clear investment recommendation: Which of your two stocks is a better buy? and why?

(ii) An explanation supporting your recommendation using evidence from your analysis (e.g. price, beta, confidence interval).

(iii) A personal reflection on what you learned from completing this assignment.

(3 marks)

STA1101 Marking Scheme

Students are required to include this marking scheme on the second page of the written report (after the cover page).