Reference no: EM131834511
Assessment : Report
(This assessment must be submitted (print copy-A4 size) between 18 January, 2018 to 23 January, 2018 to your Lecturer/Tutor during Workshop. In case of illness, apply for special consideration. Only HARD COPYwith assignment cover sheetof 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):
a) 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: January, 2015 to February, 2016; Period 2: January, 2016 to February, 2017) separately in a table.
b) 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, and.
c) Calculate the mean, standard deviation, variance, coefficient of variation and correlation coefficient for and separately (for two sub-period in a table-see next page) and comment on the result.
d) Estimate beta for your selected company for the two sub-periods.
e) Explain the value of beta that you have calculated.
f) Why the estimated value of beta is different for two sub-periods?
(Note: The assessment should be typed, printed and submitted)
Instructions for assessment :
Data collection from Yahoo Finance:
1. Go to the Yahoo Finance Web page
2. 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 (e.g. for Medibank Private). In that case choose another company.
3. Click "Historical Prices" icon.
4. Next, Click "Monthly" icon.
5. Set Data Range: Start date: January, 2015 and end date: February, 2017.
6. Click, "Apply"
7. In the bottom of the page click, "Download data". Therefore, download the data and save.
8. Keep only "Date" and the "Adj Close". This will be the share price for your selected firm. (Please ignore the dividend paid. That is, delete dividend for each period)
9. Follow the same steps from 1. And collect the data for the same period for "All Ordinaries". This will be your market index. (convert the data from oldest to newest using "sort" or "filter")
10. Follow the CAPM lecture note and divide the data for two sub-periods:
a) February, 2015 to February, 2016 and b) February, 2016 to February, 2017. (Note: to get the return from Feb, 16 students need the All Ordinaries and share price data from January, 16)
11. Risk free monthly rate of interest (already expressed in %) is given in the assignment.(Please do not change this data)
12. Students are allowed to use Microsoft excel or calculator for this assessment.
13. You must write the name of the Company you have selected on the first page.
14. Please carefully the relevant lecture (CAPM) before you start the assessment.
15. Please give page number of your assessment. (Keep the results at four decimal places).
16. For late submission (will be counted from your tutorial time) 5% marks will be deducted for each day unless approved extension.