Assessment 2: Report (20%)

Assessment 2: Report (20%)

This assessment must be submitted (print copy-A4 size between 3 May 2021 to 7 May 2021, (week 10) to your Lecturer/Tutor during Workshop. In case of illness, apply for special consideration. Only HARD COPY (email for the online students-see details in the LG) with filled in assignment cover sheet of the assignment will be accepted.

 

Q1. Collect the data from “Yahoo Finance” and answer the following questions (using the instructions given in the next page):

 

  • Collect the market price index (All Ordinaries), Share price for a company (as per instructions given in page 2) and display the data for two sub-periods (Period 1: March 2014 to February 2016; Period 2: February2018 to January 2020) separately in two separate tables.                                                                         (2 marks)
  • Calculate the return of share prices  and market return  (from market price index). Display the calculated returns along with the risk free rate of return (given in a separate excel file) in a table for two sub periods. Calculate and tabulate,                                                                                                     (2 marks)
  • Calculate the mean, standard deviation, variance and correlation coefficient for and  separately (for two sub-period in a table-see next page) and comment on the result.            (2+2=4 marks, 2 for calculation 2 for the comment)
  • Estimate beta for your selected company for the two sub-periods.

(1+1=2 marks)

  • Explain the value of beta that you have calculated.

(1.5+1.5=3 marks-1.5 for each sub-period)

  • Provide a brief description of the company.             (2 marks)
  • Why the estimated value of beta is different for two sub-periods?

(2.5+2.5=5 marks)

Name and email of the lecturers:

  

 

Instructions for assessment 2:

Data collection from Yahoo Finance:

  • Go to the Yahoo Finance Web page:

https://au.finance.yahoo.com/

  • On the right hand side enter Symbol or type the name of the Company and click “Look up”. For example: Medibank Private. The symbol will come up, otherwise see the list (excel file) of companies and you will find the symbol.

Note: Choose a company from the list provided in the assignment (see the excel file). If your Surname starts with ‘M’, choose a Company whose name starts with ‘M’. e.g. “Myer Holdings”. You may not get the data for the specified periods for some new companies. In that case choose another company.

 

Note: The data should arrange from oldest to the newest dates. For example: Sept-15 will come before Oct-15. Return data should be in percentage (%). Answer each part of the questions separately starting from (a) to (g). Students are advised to start the assignment just after week 4 lecture. Late submission without valid reason will not be accepted.

If you think that you cannot attend tutorial during week 10; please make arrangement with your lecturer/tutor or the unit co-ordinator. Name of the tutors will be posted later on vUWS.