89 2 3 5 6 5 6 2 70 4 4 4 2 2 2 9 4 6 4 3 3 6 9 2 9 7 4 9 5 9 5 60 60 98 LA 534 80 50 00 20 00 20 00 60 40 50 90 50 90 80 20 60 40 30 00 90 70 50 80 90 20 90 10 60 50 60 50 60 00 90 10 70 0 1 0 7 9 9 7 .-9. 6 5 5 0 2 2 8 3 2 3 5 7 0 5 0 2 4 4 4-0419 957 60 st 18 15 1 15 1 5 16 16 16 16-10 16 1.6 16 6 6 6 16 17 17 17 17 17 17 17 17 17 17 7 15 is 15 15 1 2 3 4 5 6 7 8 9 10 1 1 1 1 1 1 89222222222233333333330424 In January 2018, you joined Tri-Star Management Pty Ltd as an intern. On your first day, your CEO asks you to analyze information pertaining to share prices of five companies: AMP Limited (AMP.AX), Australia and New Zealand Banking Group Limited (ANZ.AX), Commonwealth Bank of Australia (CBA.AX), National Australia Bank Limited (NAB.AX) and Qantas Airways Limited (QAN.AX). The file 2019 FIN510.xlsx contains data on the adjusted end of month share prices of these five companies from January 2015 December 2017. In addition, you are provided with the value of the S&P/ASX200 market index over this period. The basic data are provided in columns A-G. You will be asked a series of questions to guide your analysis. You will need to manipulate the data to answer the questions below. Some Excel formulas are provided in the worksheet. Part 1: Average returns [5 marks 3 2 marks] Compute the monthly return on the shares of each company and the ASX200 index by using the following formula: Returnt x100 wbere Pt is the share price (or the value of ASX200 index) in time period t. (Please note that you lose the first observation when calculating returns.) (a) Using the monthly returns, calculate the average return on shares of each company from February 2015 - December 2017. Compare them with the average return on the ASX200 index. (b) Suppose an investor created an equally weighted portfolio of these five companies (i.e. invested 20% of funds in each company). what would be the average return on the portfolio? Explain how you derived your