Group Assignment Guideline sand Specifications

Group Contribution

Every member in each group must contribute equally to the group work. Any members who do not respond or contribute to the group work should be reported by the group to the Unit Coordinator for removal before week 10.

To ensure fair distribution of work,each group must agree on the percentage of contribution and tasks for each member, including specific parts of the assignment for which each member will be responsible.This information must be clearly specified in the table on the cover page,and you must retain evidence to substantiate your contribution.

Assignment Specifications

Risk Return and Portfolio  Evaluation                                                                                                   (40marks)

Instructions:

You are required togather the monthly shareprices(AdjustedClose)forJanuary2022throughJune 2024 (use 01/01/2022 - 30/06/2024 as date range in yahoo finance) for your group's assigned Australian Securities Exchange(ASX) companies from Yahoo Finance.

• Allocation of companies

Note:

• Group enrollment is specific to each campus, and you are not allowed to create groups that span across different campuses.
• Further HI5002 students can not group with HM5002 students.
• You are required to strictly adheretothe company selection guidelines.Failure to comply will result in no grades being awarded for the group assignment.

Questions

1. Write an overview on allocatedcompanies including the following as minimumre quirements:
   1. the sector /industry to which the company belongs,
   2. its principal business activities (main products or services),
   3. total market capitalization(asofJune,2024),
   4. number of full-time employees,
   5. countries/regions in which the company operates,
   6. majorcompanyeventsin2023–2024whichmayhaveimpacteditsstock prices.

(6marks)

1. Statistic alanalysis on return,risk and portfolio evaluation.

1. Calculate the monthly return and fill the table below. If there are no return values, indicate them as N.A.

(4marks)

Note:You are required to copy this table to your assessment answers document.

Please note that the table aboves how sseveral return calculations from your dataset. However, the answers to all the questions should be based on the entire dataset.

1. Derivesuitablegraphstoshowthevolatilityofmonthlyreturns,commentonsignificant observations and critically review the possible reasons behind the return volatility.

Pleaseinsertthegraphintotheassignment

(6marks)

1. Calculatethearithmeticmean,andstandarddeviationofmonthlyreturnandcommentonthe riskandreturnbehaviourofthestocks.                                                                                            (4marks)

Note:Roundoffallvaluestotwodecimalplaces

1. Calculate the geometric mean of the monthly return for each stock,andexplainwhatthese values indicate about the companies' returns

(2 marks)

1. Usingthecalculatedaveragemonthlyreturn,estimatetheannualreturn.                          (4marks)

1. Calculatetheholdingperiodreturnforeachstock.                                                                       (2marks)

1. AssumethatonJanuary1,2022,youinvested$50,000and$25,000respectivelyinthestocks withhighestreturns(Holdingperiodreturn)inthegivenstocklist.Calculatethetotalvalueof your investment at the end of June 2024.
2. Basedonthemonthlyreturn,estimatethesestocks'correlations.

Please insert the correlation matrix from your Excel output

(4marks)

(2marks)
 

1. Assumean investorseeksyour helpto constructa portfolio consistingof2 stocksfromthose youreviewed.Advisehimonthecorrectselectionofstocks,basedoncorrelationanalysis,and then review the portfolio's risk and return.

Supporty our answer with a suitabletable with the required calculations

(6marks)

Note:

1. Do not copy the questions into your assignment document;use the question number instead.
2. Ensure that you attach the Excelfileto your assignment submission,asassignments submitted without an attached Excel file will incur a 10% penalty.

Marking criteria

Academic Integrity

Holmes Instituteis committed to ensuringandupholding Academic integrity,as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes' graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches.Ifyouhave any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deductionofmarks,failure of the assessment task or unit involved,suspension ofcour seen rolment, or cancellation of course enrolment.

Table1:Six categories of Academic Integrity breaches

Source:INQA