Introduction of HP corporation

In this paper, the financial performance of the different companies’ stocks is presented. Through the analysis of the risk in the market, the investors can take rational decisions. The risk and return have a relationship with each other. The higher the risk the more will be the return.

Table of HP corporation

Riskiness of Companies HP corporation

The HP corporation has the highest beta which means that this company’s stock experience the highest volatility. The Dell’s beta is lowest among all the companies mentioned above in the table which means that this company's stocks or securities have experience less volatility. The beta is the measure of volatility which shows how much the price stock or any security has changed over a specific period of time. High volatility means more risk and less volatility means the lower amount of risk. The investors who are risk takers invest in highly volatile stocks because they know the higher the risk the more, they can earn the profit. However, for the risk-averse investor, it is appropriate to invest in such stocks who have less amount of risk but the return on such stocks is also lower (Tennent, 2008)

Change in Last 52 Weeks of HP corporation

The most change has occurred in the stocks of Dell Corporation that is approximately 57.57% which means that the risk in this stock would be higher. The lowest amount of change in the last 52 weeks has occurred in the Microsoft Corporation's stock which indicates investment in this company's stock would be less risky. Overall, it can be said that those companies' stocks are riskier where the percentage of change is higher (Pandey, 2015).

Stock Returns of HP corporation

The stocks or securities which have higher risk provide the greater return than those companies who have the lower risk. The higher the risk the more will be the profit (Tennent, 2008).

Conclusion on HP corporation

If all the above discussion is summarized than it is evident that the beta is the measure of volatility which shows how much the price stock or any security has changed over a specific period of time. High volatility means more risk and less volatility means the lower amount of risk. The investors who are risk takers invest in highly volatile stocks because they know the higher the risk the more, they can earn the profit.

References of HP corporation

Pandey, I. (2015). Financial Management. Vikas Publishing House.

Tennent, J. (2008). Guide to Financial Management (illustrated ed.). John Wiley & Sons.