Assume that today is the end of the financial year 2021-221 . Your client, Amanda, has expressed an interest in buying Channel 7 shares (Australian Securities Exchange trading code: SVW) because she is a big fan of Law and Order. As her junior financial advisor, you recommend that Amanda consider investing in a portfolio instead of risking all of her money on Channel 7. To help convince Amanda, you compromise by proposing a portfolio where Seven Group is one of the major assets (with a minimum weight of 40%). To start your analysis, you must obtain historical data on Channel 7. You are required to obtain SVWs monthly stock price history and dividends to calculate its risk & return. (You will need to find a reliable and free online data source for this task.) For simplicity, treat dividends as if they were paid at the end of the month in which they occurred.

question

Using the CAPM formula, what should be the required rate of return on equity for Channel 7? Justify your final (annualised) number carefully by explaining all key inputs. (Note: some of the latest data on Australian Government Bonds can be found here https://www.bloomberg.com/markets/rates- bonds/government-bonds/australia)

do not use chat GDP and use other softwares such as excel in order to calculate required values . please provide all the steps taken including the excel data sheet ( if accessed ) and aim for roughly 300 - 500 words in total .