Q3. Now it is the mid-2020 (during the COVID-19 pandemic), and you decided to invest in common stocks of Qantas (the airline company in Australia). According to the top-down approach to security analysis, please answer the following questions (students are required to get the relevant data by themselves).

a)Please list the monthly closing price of Qantas common stock from February 2020 to July 2020.

Date Close

2/1/2020 5.53

3/1/2020 3.23

4/1/2020 3.86

5/1/2020 3.99

6/1/2020 3.78

7/1/2020 3.23

b)Please describe whether Qantas has paid dividends in 2020. (5 marks)

c)In the economic analysis, what information should be collected and analysed? Please list at least two (2) examples. (5 marks)

d)In the industry analysis, what information should be collected and analysed? Please list at least two (2) examples. (5 marks)

e)In the fundamental analysis, what information should be collected and analysed? Please list at least three (3) examples. (5 marks)

Q4. Consider historical data showing that the average annual rate of return on the S&P portfolio over the past 90 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 20% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%.

a)Calculate the expected return of portfolios invested in T-bills and the S&P 500 index with weights shown in the table below.(10 marks)

b)Calculate the standard deviation of portfolios invested in T-bills and the S&P 500 index with weights shown in the table below.(10 marks)

Weight_Bills Weight_Index

0 1

0.2 0.8

0.6 0.4

0.8 0.2

1 0