Collect the data from Yahoo Finance and answer the following questions (using the instructions given in...
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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 2014 to January 2016; Period 2: September 2016 to September 2018) separately in two separate tables. (2 marks) b) Calculate the return of share prices (r) and market return (r) (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, (r.-R.) and (r-R₂). (2 marks) c) Calculate the mean, standard deviation, variance and correlation coefficient for (r-R,) and (r.-R.) separately (for two sub-period in a table-see next page) and (2+2-4 marks, 2 for calculation 2 for the comment) comment on the result. d) Estimate beta (2) for your selected company for the two sub-periods. e) Explain the value of beta that you have calculated. f) Provide a brief description of the company. g) Why the estimated value of beta is different for two sub-periods? (1.5+1.5-3 marks-1.5 for each sub-period) (2 marks) (1+1=2 marks) (Note: The assessment should be typed, printed and submitted) Where, r,- Return on Share Price for Company j r=Annual T-Bill rate P=Share Price at time t' (2.5+2.5-5 marks) P-P-1×100% PA R, = Risk free rate of return (given: do not multiply by 100) (Monthly R, 100 Name of the company: Lucapa Diamond Company Limited LOM.AX Code: LOM.AX Answer to part a) and b): Period 1: January 2014 - January 2016 + Date AORD Dec-13 5353.1001 Jan-14 5205.1001 Feb-14 5415.3999 Mar-14 5403 Apr-14 5470.79981 0.1827 May-14 5473.79981 0.23925 Jun-14 5382 Jul-14 5623.1001 Aug-14 5624.6001 Sept-14 5296.79981 Oct-14 5505 Nov-14 5298.1001 Dec-14 5388.6001 Jan-15 5551.6001 Feb-15 5898.5 Mar-15 5861.8999 Apr-15 5773.7002 May-15 5774.8999 Jun-15 5451 2002 Jul-15 5681.7002 Aug-15 5222.1001 Sept-15 5058.6001 Oct-15 5288.6001 Nov-15 5218.2002 LOM.AX R Dec-15 5344.6001 Jan-16 5056.6001 0.1827 0.0058 0.2088 0.0033 0.1827 0.1566 0.435 0.46 0.4 0.385 0.38 0.365 0.32 0.26 0.22 0.19 0.21 0.26 0.2 0.175 0.19 0.42 0.38 0.27 0.28 0.29 0.0042 0.0042 0.0025 0.0025 0.0033 0.0025 0.0025 0.0017 0.0017 0.0017 0.0025 0.0025 0.0017 0.0025 0.0017 0.0017 0.0017 0.0025 0.0058 0.0017 0.0017 0.0100 0.0191 0.0216 r.-R, r-R, Average Standard deviation Variance Livate Windows Correlation coefficient ings to activate Wi Beta Period 2: September 2016 - September 2018 Date AORD LOM.AX RE 5529.3999 5525.2002 Aug-16 Sept-16 Oct-16 5402.3999 Nov-16 5502.3999 Dec-16 5719.1001 Jan-17 Feb-17 Mar-17 5903.79981 5675 5761 Apr-17 5947.6001 May-17 5761.29981 Jun-17 5764 Jul-17 5773.8999 Aug-17 5776.29981 Sept-17 5744.8999 Oct-17 5976.3999 Nov-17 6023.5 Dec-18 6167.29981 Jan-18 6146.5 Feb-18 6117.29981 Mar-18 5868.8999 Apr-18 6071.6001 May-18 6123.5 Jun-18 6289.7002 Jul-18 6366.2002 Aug-18 6427.79981 Sept-18 6325.5 0.34 0.465 0.475 0.45 0.42 0.4 0.405 0.36 0.315 0.305 0.285 0.25 0.245 0.265 0.285 0.245 0.225 0.23 0.235 0.23 0.27 0.27 0.275 0.26 0.26 0.23 0.0250 0.0241 0.0275 0.0374 0.0424 0.0424 0.0432 0.0615 0.0664 0.0739 0.0813 0.0887 0.0838 0.0854 0.0887 0.1019 0.1093 0.1167 0.1299 0.1406 0.1455 0.1537 0.1570 0.1619 0.1676 0.1758 Ym r₂ Average Standard deviation Variance Correlation coefficient Beta rm-RF rj - RE 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 2014 to January 2016; Period 2: September 2016 to September 2018) separately in two separate tables. (2 marks) b) Calculate the return of share prices (r) and market return (r) (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, (r.-R.) and (r-R₂). (2 marks) c) Calculate the mean, standard deviation, variance and correlation coefficient for (r-R,) and (r.-R.) separately (for two sub-period in a table-see next page) and (2+2-4 marks, 2 for calculation 2 for the comment) comment on the result. d) Estimate beta (2) for your selected company for the two sub-periods. e) Explain the value of beta that you have calculated. f) Provide a brief description of the company. g) Why the estimated value of beta is different for two sub-periods? (1.5+1.5-3 marks-1.5 for each sub-period) (2 marks) (1+1=2 marks) (Note: The assessment should be typed, printed and submitted) Where, r,- Return on Share Price for Company j r=Annual T-Bill rate P=Share Price at time t' (2.5+2.5-5 marks) P-P-1×100% PA R, = Risk free rate of return (given: do not multiply by 100) (Monthly R, 100 Name of the company: Lucapa Diamond Company Limited LOM.AX Code: LOM.AX Answer to part a) and b): Period 1: January 2014 - January 2016 + Date AORD Dec-13 5353.1001 Jan-14 5205.1001 Feb-14 5415.3999 Mar-14 5403 Apr-14 5470.79981 0.1827 May-14 5473.79981 0.23925 Jun-14 5382 Jul-14 5623.1001 Aug-14 5624.6001 Sept-14 5296.79981 Oct-14 5505 Nov-14 5298.1001 Dec-14 5388.6001 Jan-15 5551.6001 Feb-15 5898.5 Mar-15 5861.8999 Apr-15 5773.7002 May-15 5774.8999 Jun-15 5451 2002 Jul-15 5681.7002 Aug-15 5222.1001 Sept-15 5058.6001 Oct-15 5288.6001 Nov-15 5218.2002 LOM.AX R Dec-15 5344.6001 Jan-16 5056.6001 0.1827 0.0058 0.2088 0.0033 0.1827 0.1566 0.435 0.46 0.4 0.385 0.38 0.365 0.32 0.26 0.22 0.19 0.21 0.26 0.2 0.175 0.19 0.42 0.38 0.27 0.28 0.29 0.0042 0.0042 0.0025 0.0025 0.0033 0.0025 0.0025 0.0017 0.0017 0.0017 0.0025 0.0025 0.0017 0.0025 0.0017 0.0017 0.0017 0.0025 0.0058 0.0017 0.0017 0.0100 0.0191 0.0216 r.-R, r-R, Average Standard deviation Variance Livate Windows Correlation coefficient ings to activate Wi Beta Period 2: September 2016 - September 2018 Date AORD LOM.AX RE 5529.3999 5525.2002 Aug-16 Sept-16 Oct-16 5402.3999 Nov-16 5502.3999 Dec-16 5719.1001 Jan-17 Feb-17 Mar-17 5903.79981 5675 5761 Apr-17 5947.6001 May-17 5761.29981 Jun-17 5764 Jul-17 5773.8999 Aug-17 5776.29981 Sept-17 5744.8999 Oct-17 5976.3999 Nov-17 6023.5 Dec-18 6167.29981 Jan-18 6146.5 Feb-18 6117.29981 Mar-18 5868.8999 Apr-18 6071.6001 May-18 6123.5 Jun-18 6289.7002 Jul-18 6366.2002 Aug-18 6427.79981 Sept-18 6325.5 0.34 0.465 0.475 0.45 0.42 0.4 0.405 0.36 0.315 0.305 0.285 0.25 0.245 0.265 0.285 0.245 0.225 0.23 0.235 0.23 0.27 0.27 0.275 0.26 0.26 0.23 0.0250 0.0241 0.0275 0.0374 0.0424 0.0424 0.0432 0.0615 0.0664 0.0739 0.0813 0.0887 0.0838 0.0854 0.0887 0.1019 0.1093 0.1167 0.1299 0.1406 0.1455 0.1537 0.1570 0.1619 0.1676 0.1758 Ym r₂ Average Standard deviation Variance Correlation coefficient Beta rm-RF rj - RE
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ANSWER Based on the information provided here are the answers to the questions a The market price index All Ordinaries for the two subperiods is as fo... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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