New

Learn smart - Learn online. Upto 88% off on courses for a limited time. View Courses

Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

ACC91210-Risk And Return Analysis Using Historical Market Data

tag 0 Download 6 Pages / 1,310 Words tag 02-07-2020

Question:

The assignment requires you to conduct a risk and return analysis using historical market data. Prepare your data prior to performing the risk and return calculations:

Choose one company from Table 1 below. This company will be your case company for this and Task 1 of the next assessment.

Table 1: Monthly Data for Case Companies


For completion of the assessment tasks, you will also need the following data (see Table 2 below):
 
Table 2: Monthly Data for Reference Company and Market Index

 
Tasks for Case Study 1

a) Using the data above, calculate:
 
(1) the historical monthly rates of return for the market index only (monthly rates of return for the companies are given); and
 
(2) the historical average rate of return and standard deviation of returns for:
i) your case company;

ii) the reference company; and

iii) the market index. 

b) Calculate portfolio historical average rate of return and standard deviation assuming a portfolio of equal weighting for your case company and the reference company (2.5 marks).
 
c) Use CAPM to estimate the expected return for the shares of: 1) your case company; and 2) the reference company as at 28 February 2018. To do this, use the yield to maturity on that date of a 10-year Australian Treasury bond as a proxy for the risk-free rate, assume the market risk premium is 6.6% and use the company’s current beta. Assume that the reference company has a negative beta of -0.20. 

d) Using the data from part c, calculate the portfolio expected return and beta, again assuming equal weights for the two companies.  company, discuss the risk and return measures you have calculated.
 
 
Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 6 pages

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2020). Risk And Return Analysis Using Historical Market Data. Retrieved from https://myassignmenthelp.com/free-samples/acc91210-risk-and-return-analysis-using-historical-market-data.

"Risk And Return Analysis Using Historical Market Data." My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/acc91210-risk-and-return-analysis-using-historical-market-data.

My Assignment Help (2020) Risk And Return Analysis Using Historical Market Data [Online]. Available from: https://myassignmenthelp.com/free-samples/acc91210-risk-and-return-analysis-using-historical-market-data
[Accessed 15 August 2022].

My Assignment Help. 'Risk And Return Analysis Using Historical Market Data' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/acc91210-risk-and-return-analysis-using-historical-market-data> accessed 15 August 2022.

My Assignment Help. Risk And Return Analysis Using Historical Market Data [Internet]. My Assignment Help. 2020 [cited 15 August 2022]. Available from: https://myassignmenthelp.com/free-samples/acc91210-risk-and-return-analysis-using-historical-market-data.


We Can Help!

Get top notch assistance from our best tutors !
Excel in your academics & career in one easy click!

icon

Other Samples

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?