Please note I need in 24 hoursBusiness Finance 6392 S1, 2018 Major Group Assignment Due date: by...

Question

Please note I need in 24 hoursBusiness Finance 6392  S1, 2018  Major Group Assignment  Due date: by 23.55 pm on Thursday, 20th April, 2018.  Submission: Each group will submit one hard copy and one soft copy as advised in the Unit Outline You want to form a portfolio of investment consisting of shares listed in the Australian Stock  Exchange (ASX).  Select 7 shares from the ASX listed securities/ companies. You can collect  the data of your own from any data sources such as ASX website, yahoo finance etc.  Use  monthly share price data from January 2001 to December 2017. To perform the analysis:  1. Collect information on the shortest maturity Treasury Notes (Treasury security) rate  in Australia as a proxy for risk-free rate.  2. Calculate the monthly returns of each share and of the market index using the share  price indices and market price index (All Ordinaries Index).  3. Calculate the expected (average) return of each of the shares and of the market  using the returns calculated in (2).  4. Calculate the beta for each of the 7 shares, running a regression of a share’s returns  (Ri) on the market return (Rm). It is the same as calculating the SLOPE in Excel.  5. Calculate the fair (risk consistent) return for each share applying the capital asset  pricing model (CAPM) and using the information you have gathered.  6. From the information you gathered, draw the security market line of the market  (ASX).  7. Plot the shares, you analysed, on the graph of the security market line drawn in (6)  above.  8. From your plot in (6 &7) above, identify the shares you will select to be included in  your portfolio. Explain your rationale for the selection and rejection of shares.   [Note: you need to have minimum two shares in your portfolio. If you do not find  two suitable shares in the 7 shares which you have analysed, analyse some more  shares until you get at least two suitable shares for investment. However, if you find  more than two suitable shares in the five shares you have analysed, include all the  suitable shares in the proposed portfolio]  9. Calculate the expected return and beta of your portfolio considering equal  investment in each share. Plot the portfolio (risk and return) on the graph of the  security market line drawn in (6) above. Comment on the portfolio risk and return.  10. Why should you consider your conclusion in part (8) above to be less than certain? NB: Students are required to use more than ten (10) recently published (published in  2018 or before, starting from 2018 to backward) journal articles published on or  related to risk (beta) and return relationship as references, not websites addresses.

Shakeel · Accepted Answer

1. Collect information on the shortest maturity Treasury Notes (Treasury security) rate in Australia as a proxy for risk-free rate. 
The yield on 3-months T-bill	=	1.72%
2. Calculate the monthly returns of each share and of the market index using the share price indices and market price index (All Ordinaries Index).  
	Date
	Barnes Group
	Citi Group
	Dominion Energy
	Qantas Airways
	Tesla
	AT&T
	Tabcorp Holdings
	AORD
	12/31/2017
	-4.32%
	-1.02%
	-2.76%
	2.81%
	3.45%
	6.87%
	3.23%
	0.50%
	11/30/2017
	1.81%
	2.72%
	3.68%
	-11.11%
	5.83%
	9.47%
	15.05%
	2.39%
	10/31/2017
	-7.60%
	1.04%
	5.47%
	-7.80%
	-3.11%
	-14.09%
	8.02%
	0.79%
	9/30/2017
	12.93%
	7.42%
	-1.41%
	6.81%
	1.43%
	4.56%
	5.15%
	4.03%
	8/31/2017
	3.89%
	-0.61%
	2.06%
	1.92%
	0.91%
	-2.70%
	8.54%
	-0.54%
	7/31/2017
	2.82%
	2.35%
	0.72%
	7.52%
	-10.49%
	3.37%
	-1.67%
	0.04%
	6/30/2017
	3.69%
	10.47%
	-4.23%
	-6.99%
	-4.65%
	-2.08%
	-4.35%
	0.17%
	5/31/2017
	2.95%
	2.68%
	4.31%
	14.17%
	-2.27%
	-1.61%
	-4.59%
	0.05%
	4/30/2017
	7.07%
	-1.17%
	0.80%
	18.16%
	4.27%
	-4.62%
	-3.58%
	-3.13%
	3/31/2017
	2.72%
	0.30%
	-0.09%
	11.53%
	-5.08%
	-0.57%
	0.00%
	0.74%
	2/28/2017
	4.11%
	7.13%
	1.78%
	3.73%
	-3.32%
	0.27%
	16.18%
	2.48%
	1/31/2017
	1.50%
	-6.06%
	2.35%
	9.97%
	-3.60%
	4.41%
	-10.13%
	1.52%
	12/31/2016
	2.94%
	5.74%
	2.64%
	2.40%
	-1.96%
	4.53%
	-1.46%
	-0.77%
	11/30/2016
	15.96%
	14.73%
	-2.54%
	0.91%
	0.99%
	6.28%
	2.56%
	3.94%
	10/31/2016
	-1.75%
	4.07%
	1.25%
	7.84%
	1.41%
	-9.41%
	-3.10%
	1.85%
	9/30/2016
	-1.60%
	-1.07%
	1.09%
	1.06%
	-3.86%
	-0.66%
	-2.81%
	-2.22%
	8/31/2016
	8.99%
	9.37%
	-4.95%
	-3.70%
	2.62%
	-4.51%
	3.68%
	-0.08%
	7/31/2016
	14.52%
	3.35%
	1.09%
	2.53%
	-8.84%
	0.19%
	1.64%
	-2.03%
	6/30/2016
	-0.41%
	-8.98%
	7.86%
	12.06%
	3.78%
	10.37%
	7.00%
	6.28%
	5/31/2016
	2.77%
	0.73%
	1.09%
	-8.44%
	-0.54%
	2.10%
	3.39%
	-2.52%
	4/30/2016
	-7.25%
	10.85%
	-3.90%
	-4.35%
	4.29%
	-0.89%
	-0.23%
	2.48%
	3/31/2016
	2.46%
	7.46%
	7.44%
	-20.88%
	4.99%
	6.01%
	3.50%
	3.19%
	2/29/2016
	5.54%
	-8.65%
	-3.12%
	5.44%
	1.52%
	3.91%
	3.71%
	4.12%
	1/31/2016
	-8.14%
	-17.72%
	6.70%
	-0.52%
	-6.75%
	4.80%
	-6.52%
	-2.15%
	12/31/2015
	-7.84%
	-4.33%
	1.35%
	-5.13%
	0.36%
	2.20%
	-2.34%
	-5.39%
	11/30/2015
	2.47%
	1.82%
	-5.68%
	12.36%
	4.66%
	1.92%
	3.06%
	2.42%
	10/31/2015
	4.27%
	7.18%
	1.49%
	-7.85%
	-0.74%
	2.85%
	-3.18%
	-1.33%
	9/30/2015
	-6.38%
	-7.24%
	1.84%
	-0.29%
	-3.74%
	-2.57%
	1.07%
	4.55%
	8/31/2015
	-0.77%
	-8.44%
	-2.72%
	10.71%
	1.03%
	-2.46%
	3.74%
	-3.13%
	7/31/2015
	-0.15%
	5.83%
	7.22%
	-10.40%
	-11.09%
	-2.20%
	-4.54%
	-8.09%
	6/30/2015
	-2.87%
	2.24%
	-4.31%
	18.67%
	5.70%
	2.84%
	6.59%
	4.23%
	5/31/2015
	0.40%
	1.43%
	-1.62%
	-10.23%
	-1.29%
	1.14%
	-9.54%
	-5.61%
	4/30/2015
	-0.96%
	3.49%
	1.14%
	3.83%
	-0.16%
	6.09%
	3.29%
	0.02%
	3/31/2015
	1.48%
	-1.72%
	-0.83%
	8.65%
	-1.27%
	-5.53%
	5.66%
	-1.50%
	2/28/2015
	16.51%
	11.67%
	-6.24%
	7.96%
	2.39%
	6.47%
	-6.51%
	-0.62%
	1/31/2015
	-7.19%
	-13.23%
	-0.01%
	10.73%
	-2.00%
	-1.99%
	12.80%
	6.25%
	12/31/2014
	1.09%
	0.26%
	6.87%
	8.75%
	8.88%
	-5.06%
	10.12%
	3.02%
	11/30/2014
	0.46%
	0.84%
	1.75%
	25.00%
	4.92%
	2.89%
	1.72%
	1.71%
	10/31/2014
	20.46%
	3.30%
	3.20%
	14.29%
	1.07%
	-1.14%
	0.25%
	-3.76%
	9/30/2014
	-11.08%
	0.33%
	-0.75%
	20.86%
	6.23%
	0.80%
	12.74%
	3.93%
	8/31/2014
	-0.03%
	5.62%
	3.81%
	-5.44%
	-0.98%
	-0.50%
	3.89%
	-5.83%
	7/31/2014
	-11.13%
	3.84%
	-5.43%
	10.11%
	1.28%
	0.65%
	2.57%
	0.03%
	6/30/2014
	3.41%
	-0.97%
	4.62%
	5.95%
	5.37%
	-0.31%
	4.17%
	4.48%
	5/31/2014
	-2.96%
	-0.71%
	-4.94%
	-10.32%
	-2.43%
	0.66%
	-3.45%
	-1.68%
	4/30/2014
	0.13%
	0.65%
	2.18%
	15.16%
	2.30%
	1.80%
	-6.45%
	0.05%
	3/31/2014
	0.35%
	-2.12%
	3.16%
	10.41%
	2.76%
	9.83%
	9.09%
	1.25%
	2/28/2014
	2.70%
	2.55%
	2.19%
	-5.15%
	4.73%
	-2.89%
	-0.71%
	-0.23%
	1/31/2014
	-2.27%
	-8.98%
	5.90%
	5.91%
	-1.75%
	-5.23%
	2.90%
	4.04%
	12/31/2013
	5.28%
	-1.53%
	-0.34%
	0.46%
	-2.10%
	-0.14%
	-4.96%
	-2.76%
	11/30/2013
	2.70%
	8.51%
	1.82%
	-10.25%
	3.75%
	-1.43%
	2.83%
	0.73%
	10/31/2013
	1.78%
	0.56%
	3.04%
	-2.01%
	-2.32%
	7.04%
	-1.94%
	-1.96%
	9/30/2013
	12.06%
	0.39%
	7.08%
	-15.59%
	4.23%
	-0.03%
	9.76%
	3.88%
	8/31/2013
	-5.24%
	-7.31%
	-1.62%
	7.66%
	5.57%
	-2.86%
	5.62%
	1.80%
	7/31/2013
	10.04%
	8.69%
	5.45%
	8.73%
	-1.80%
	-0.37%
	-1.53%
	1.78%
	6/30/2013
	-0.43%
	-7.71%
	0.48%
	-6.67%
	4.61%
	1.17%
	7.21%
	5.45%
	5/31/2013
	8.82%
	11.42%
	-8.32%
	-15.36%
	0.63%
	-5.47%
	-7.29%
	-2.82%
	4/30/2013
	-4.01%
	5.47%
	6.02%
	-16.05%
	-4.82%
	2.10%
	-4.64%
	-4.93%
	3/31/2013
	9.14%
	5.41%
	4.95%
	6.44%
	10.42%
	2.17%
	6.81%
	3.79%
	2/28/2013
	11.34%
	-0.43%
	3.49%
	8.51%
	2.69%
	4.55%
	6.84%
	-2.74%
	1/31/2013
	6.41%
	6.57%
	4.46%
	7.52%
	-0.22%
	3.20%
	4.26%
	4.48%
	12/31/2012
	7.01%
	14.47%
	2.42%
	2.68%
	5.26%
	-1.23%
	0.00%
	5.07%
	11/30/2012
	-7.82%
	-7.54%
	-3.16%
	12.45%
	1.39%
	-0.18%
	8.93%
	3.24%
	10/31/2012
	-8.52%
	14.27%
	-0.30%
	-0.38%
	4.11%
	-8.25%
	-1.41%
	-0.38%
	9/30/2012
	6.11%
	10.17%
	1.87%
	9.02%
	5.61%
	2.89%
	2.90%
	2.93%
	8/31/2012
	-0.80%
	9.51%
	-3.37%
	6.09%
	7.32%
	-2.17%
	-0.11%
	1.55%
	7/31/2012
	-1.77%
	-1.02%
	0.57%
	0.88%
	-3.75%
	6.34%
	-10.15%
	1.16%
	6/30/2012
	4.83%
	3.43%
	4.78%
	6.05%
	8.40%
	4.36%
	10.92%
	3.72%
	5/31/2012
	-11.86%
	-19.76%
	-0.25%
	-27.85%
	3.94%
	5.30%
	1.03%
	0.04%
	4/30/2012
	0.34%
	-9.60%
	1.91%
	-8.87%
	0.28%
	5.38%
	1.05%
	-7.47%
	3/31/2012
	-4.68%
	9.73%
	2.52%
	-8.40%
	7.60%
	2.09%
	5.51%
	1.07%
	2/29/2012
	9.53%
	8.46%
	0.86%
	3.18%
	5.91%
	5.54%
	6.57%
	0.73%
	1/31/2012
	4.89%
	16.76%
	-5.73%
	9.84%
	-0.90%
	-2.74%
	-6.19%
	1.44%
	12/31/2011
	-2.77%
	-4.23%
	3.83%
	7.88%
	0.00%
	4.35%
	6.59%
	5.22%
	11/30/2011
	7.05%
	-13.01%
	0.06%
	-3.63%
	5.38%
	0.40%
	-3.19%
	-1.76%
	10/31/2011
	20.88%
	23.30%
	1.62%
	-6.02%
	1.94%
	2.77%
	-4.08%
	-4.03%
	9/30/2011
	-16.07%
	-17.49%
	5.22%
	14.33%
	0.00%
	0.14%
	13.95%
	7.13%
	8/31/2011
	-5.46%
	-18.99%
	0.60%
	-10.19%
	9.44%
	-1.32%
	0.45%
	-6.86%
	7/31/2011
	-1.85%
	-7.93%
	0.37%
	-14.91%
	1.34%
	-6.84%
	-12.73%
	-2.90%
	6/30/2011
	3.25%
	1.22%
	2.20%
	0.27%
	3.46%
	-0.48%
	-2.13%
	-3.42%
	5/31/2011
	-2.55%
	-10.35%
	2.80%
	-12.38%
	-4.30%
	2.85%
	-12.58%
	-2.70%
	4/30/2011
	18.49%
	3.85%
	4.98%
	-0.47%
	3.78%
	1.67%
	2.36%
	-2.25%
	3/31/2011
	-1.50%
	-5.56%
	-2.04%
	-3.21%
	3.19%
	7.86%
	1.87%
	-0.60%
	2/28/2011
	7.37%
	-2.90%
	4.80%
	-6.84%
	8.59%
	4.63%
	9.18%
	0.10%
	1/31/2011
	-4.11%
	1.90%
	1.92%
	-2.50%
	-0.54%
	-6.33%
	9.65%
	1.52%
	12/31/2010
	8.73%
	12.62%
	3.99%
	-5.51%
	0.36%
	5.72%
	-2.39%
	0.06%
	11/30/2010
	4.95%
	0.72%
	-4.44%
	-3.42%
	-0.71%
	-1.15%
	0.14%
	3.65%
	10/31/2010
	3.41%
	6.65%
	-0.46%
	-7.39%
	5.24%
	-0.28%
	-3.79%
	-1.20%
	9/30/2010
	16.25%
	5.39%
	3.24%
	1.79%
	1.91%
	5.

Business Finance 6392 S1, 2018 Major Group Assignment Due date: by 23.55 pm on Thursday, 20th April, 2018. Submission: Each group will submit one hard copy and one soft copy as advised in the Unit...

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