Agenda Item #4 Portfolio Returns With the impacts of COVID-19 still weighing on the portfolio managers mind. You have been tasked with evaluating its effects on two contrasting portfolios. In addition to understanding the relationship between risk and return, you should be able to calculate the standard deviation of a two-asset portfolio with different weighting combinations. You are aware that the current risk-free rate is 1.08%, and the expected return on the market is 6.49%. Qantas Beta: 1.06 Village Roadshow Beta: 2 Wesfarmers Beta: 0.86 BHP Beta: 0.99

Dividend .13 Date 1/06/2019 1/07/2019 1/08/2019 1/09/2019 1/10/2019 1/11/2019 1/12/2019 1/01/2020 1/02/2020 1/03/2020 1/04/2020 1/05/2020 1/06/2020 Qantas Price 5.42 5.43 5.78 6.10 6.44 6.45 7.32 7.16 6.41 5.31 3.38 3.62 4.01 Beta Village Roadshow Price Dividend 3.41 2.71 2.61 2.85 0.05 2.81 3.22 3.21 3.81 3.99 3.46 1.77 2.02 2.07 Beta 2 .135 1.06 Portfolio #2 Dividend Dividend 0.78 1.14 Date 1/06/2019 1/07/2019 1/08/2019 1/09/2019 1/10/2019 1/11/2019 1/12/2019 1/01/2020 1/02/2020 1/03/2020 1/04/2020 1/05/2020 1/06/2020 Beta Wesfarmers Price 36.67 36.10 39.61 38.60 40.18 39.96 42.33 41.45 45.09 40.57 35.90 37.67 40.66 0.86 BHP Price 36.81 41.68 40.22 36.56 36.74 36.52 38.26 38.98 38.62 33.73 30.07 30.68 35.68 Beta 0.75 0.99 0.99 Dividend .13 Date 1/06/2019 1/07/2019 1/08/2019 1/09/2019 1/10/2019 1/11/2019 1/12/2019 1/01/2020 1/02/2020 1/03/2020 1/04/2020 1/05/2020 1/06/2020 Qantas Price 5.42 5.43 5.78 6.10 6.44 6.45 7.32 7.16 6.41 5.31 3.38 3.62 4.01 Beta Village Roadshow Price Dividend 3.41 2.71 2.61 2.85 0.05 2.81 3.22 3.21 3.81 3.99 3.46 1.77 2.02 2.07 Beta 2 .135 1.06 Portfolio #2 Dividend Dividend 0.78 1.14 Date 1/06/2019 1/07/2019 1/08/2019 1/09/2019 1/10/2019 1/11/2019 1/12/2019 1/01/2020 1/02/2020 1/03/2020 1/04/2020 1/05/2020 1/06/2020 Beta Wesfarmers Price 36.67 36.10 39.61 38.60 40.18 39.96 42.33 41.45 45.09 40.57 35.90 37.67 40.66 0.86 BHP Price 36.81 41.68 40.22 36.56 36.74 36.52 38.26 38.98 38.62 33.73 30.07 30.68 35.68 Beta 0.75 0.99 0.99