Calculate the Sharpe Ratio of each stock return

Reference no: EM132357600 , Length: 1

Assignment -

1. Please submit a one-page investment report (see the exemplar) excluding references.

You are an equity analyst in an investment bank. You need to write a report on the risk and return of the following stocks listed in Australian Stock Exchange:

National Australia (NAB.AX)
BHP Billiton Limited (BHP.AX)
Wesfarmers Ltd (WES.)

Data sources - Daily adjusted closing stock prices for companies at Yahoo Finance

Find attached more data sources- Analysis period January 2, 2013-December 28, 2017.

Required: Write a one-page investment report on the risk and return of the above stocks with the following parts:

(a) Analysis of asset returns: The analysis of asset returns includes the discussion on average return, maximum and minimum return and distribution of returns.

(b) Portfolio Return and Risk: You need a create a three-asset portfolio having the equal weighting for each stock above. After creating the portfolio, you need to analyse portfolio return and risk.

(c) Risk Measure (Sharpe Ratio): You need to calculate the Sharpe Ratio of each stock return, assuming the risk free return during the analysis period is 3% and choose the best stock on the basis of Sharpe Ratio.

(d) Value at Risk (VaR): You need to calculate the Value at Risk using a normal distribution at 95% confidence level for each stock listed above and choose the best stock on the basis of VaR. This Unit requires you to use the Harvard referencing system.

Attachment:- Corporate Finance Assignment Files.rar

Reference no: EM132357600

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Reviews

len2357600

8/14/2019 12:03:49 AM

Find attached example. it’s important get all the answer correct as with my class exam together i will get my score. No of Pages/Words : 1 page. Please submit a one-page investment report (see the exemplar) excluding references. Rubric - Analysis of asset returns (30%) Outstanding Analysis at asset returns, with no error in calculating returns. Portfolio return and risk (30%) Outstanding analysis of Portfolio return and risk, with no error in calculating portfolio return and risk. Risk measure (Sharpe Ratio) (10%) Outstanding analysis of Risk measure (Sharpe Ratio). with no error in calculating risk measure (Sharpe Ratio) Value at Risk (VaR) Outstanding analysis of Value at Risk (VaR), with no error in calculating VaR.

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