Question

You know share market is going bullish during the last several months. Collect weekly data on the share price of any two important industries during the past six months. Calculate the range of share prices. Comment on how volatile are the share prices.

Answer 1

Month	Price of shares Tata Motors	Price of shares Reliance
Oct. Nov. Dec. Jan. Feb. Mar.	325 397 405 415 420 388	913.35 900.25 750.90 780.70 799.25 850.35

For Tata Motors
Highest Value=420
Lowest Value=325

Range (R) = Highest Value (H)− Lowest Value (L)
or, R_₁ = 420 − 325
$\Rightarrow$ R_₁ = 95
$\mathrm{Coefficient}\mathrm{of}\mathrm{Range}\left({\mathrm{CR}}_1\right)=\frac{H-L}{H+L}=\frac{420-325}{420+325}=\frac{95}{745}=0.127$

For Reliance
Highest Value= 913.35
Lowest Value= 750.90

Range (R)= Highest value (H)− Lowest value (L)
or, R_₂ = 913.35 − 750.90
$\Rightarrow$ R_₂ = 162.45

$\mathrm{Coefficient}\mathrm{of}\mathrm{Range}\left({\mathrm{CR}}_2\right)=\frac{H-L}{H+L}=\frac{913.35-750.90}{913.35+750.90}=\frac{162.45}{1664.25}=0.097$

From the above results we can observe that the prices of the Tata Motors shares are less volatile as compared to the prices of Reliance shares.