a. What is the essential aspect of assessing portfolio performance using an asset pricing model? Explain your answer in details. (5 marks)

b. CBC Corporation is a listed construction company in Australia and it is classified as a large cap company by ASX. On 31st December 2019, it signed a $915 million contract to undertake a large construction project in Melbourne. The new contract is expected to increase the profits of the business by a substantial amount over the next 5 years. The news of the contract was announced publicly on 2nd January 2020. How would the share price of CBC Corporation adjust to the formal announcement on 2nd January 2020 assuming the Australian stock market is in the form of semi-strong efficiency? How would the share price of CBC Corporation adjust to the formal announcement on 2nd January assuming the Australian stock market is in the form of strong efficiency? (5 marks)

c. On 19 March 2020, the Australian Government announced that Australian borders will be closed from 20 March 2020 due to COVID-19 pandemic. What was the possible impact of this announcement to share price of CBC Corporation around the announcement date assuming the Australian stock market is in semi-strong form efficiency? Explain your answers in details according to theoretical framework of Capital Asset Pricing Model. (5 marks)