b)Calculate the return of share prices and market return (from market price index). Display the calculated returns along with the risk free rate of return (given in a separate excel file) in a table for two sub periods. Calculate and tabulate, and .

c)Calculate the mean, standard deviation, variance, coefficient of variation and correlation coefficient for and separately (for two sub-period) and comment on the result.(1+2=3 marks, 1 for calculation 2 for the comment)

d)Estimate beta for your selected company for the two sub-periods.

e) Explain the value of beta that you have calculated.

f)Why the estimated value of beta is different for two sub-periods.

a) Collect the market price index (All Ordinaries), Share price for a company (as per instructions given in page 2) and display the data for two sub-periods separately in a table. The market price index (All Ordinaries) from 2/2013 - 7/2014 Date 7/1/2014 6/2/2014 5/1/2014 4/1/2014 3/3/2014 2/3/2014 1/2/2014 12/2/2013 11/1/2013 10/1/2013 9/2/2013 8/1/2013 7/1/2013 6/3/2013 5/1/2013 4/2/2013 3/1/2013 2/1/2013 Adj Close 5623.1 5382 5473.8 5470.8 5403 5415.4 5205.1 5353.1 5314.3 5420.3 5217.7 5125.3 5035.7 4775.4 4914 5168.6 4979.9 5120.4 The market price index (All Ordinaries) from 8/2014 - 1/2016 Date 1/4/2016 12/1/2015 11/2/2015 10/1/2015 9/1/2015 8/3/2015 7/1/2015 6/1/2015 5/1/2015 4/1/2015 3/2/2015 2/2/2015 1/2/2015 12/1/2014 11/3/2014 10/1/2014 9/1/2014 8/1/2014 Adj Close 5056.6 5344.6 5218.2 5288.6 5058.6 5222.1 5681.7 5451.2 5774.9 5773.7 5861.9 5898.5 5551.6 5388.6 5298.1 5505 5296.8 5624.6 Historical Adj Close 1 Prices from 2/2013 - 7/2014Date 7/1/2014 6/2/2014 5/1/2014 4/1/2014 3/3/2014 2/3/2014 1/1/2014 12/2/2013 11/1/2013 10/1/2013 9/2/2013 8/1/2013 7/1/2013 6/3/2013 5/1/2013 4/1/2013 3/1/2013 2/1/2013 Historical Price from 8/2014 - 1/2016Date 1/1/2016 12//2015 11/2/2015 10/1/2015 9/1/2015 8/3/2015 7/1/2015 6/1/2015 5/1/2015 4/1/2015 3/2/2015 2/2/2015 1/1/2015 12/1/2014 11/3/2014 10/1/2014 9/1/2014 8/1/2014 0.53189 0.53189 0.55141 0.49285 0.51725 0.52551 0.57712 0.60058 0.61465 0.66157 0.70849 0.71319 0.73732 0.6256 0.68369 0.7686 0.7686 0.70604 Adj Close 0.78075 0.77099 0.65388 0.70268 0.69292 0.58068 0.40989 0.3123 0.40502 0.42453 0.44893 0.46357 0.47821 0.52701 0.50749 0.45869 0.47333 0.51725 2 b) Calculate the return of share prices rj and market return rm (from market price index). Display the calculated returns along with the risk free rate of return (given in a separate excel file) in a table for two sub periods. Calculate and tabulate, and rj RF rm RF . c) Calculate the mean, standard deviation, variance, coefficient of variation and correlation coefficient for and separately (for two sub-period) and comment on r R m F rj RF the result. (1+2=3 marks, 1 for calculation 2 for the comment) d) Estimate beta j for your selected company for the two sub-periods. e) Explain the value of beta that you have calculated. f) Why the estimated value of beta is different for two sub-periods. 3 Collect the data from \"Yahoo Finance\" and answer the following questions (using the instructions given below): a) Collect the market price index (All Ordinaries), Share price for a company (as per instructions given in page 2) and display the data for two sub-periods separately in a table. b) Calculate the return of share prices and market return (from market price r rj m index). Display the calculated returns along with the risk free rate of return (given in a separate excel file) in a table for two sub periods. Calculate and tabulate, rj RF and rm RF . c) Calculate the mean, standard deviation, variance, coefficient of variation and correlation coefficient for and separately (for two sub-period) and r R r R j F m F comment on the result. d) Estimate beta for your selected company for the two sub-periods. j e) Explain the value of beta that you have calculated. f) Why the estimated value of beta is different for two sub-periods. Instruction:Go to the Yahoo Finance Web page: 1. https://au.finance.yahoo.com/ On the left hand side enter Symbol or type the name of the Company and click \"Look up\". PGH Pact Group Holdings LTD Share price (24 Feb,16) : $4.80 Change in share price: 0.09 % change: 1.91% The symbol will come up, otherwise see the list (excel file) of companies and you will find the symbol. 2. 3. 4. 5. 6. Click \"Historical Prices\" icon. Next, Click \"Monthly data\" icon. Set Data Range: Start date: February, 2013 and end date: January, 2016. Click, \"Get Prices\" In the bottom of the page click, \"Download to Spreadsheet\". Therefore, download the data and save. 1 7. 10. Keep only \"Date\" and the \"Adj Close\". This will be the share price for your selected firm. (Please ignore the dividend paid. That is, delete dividend for each period) Follow the same steps from 1. And collect the data for the same period for \"All Ordinaries\". This will be your market index. Follow the lecture note and divide the data for two sub-periods: a) Feb, 2013 to July, 2014 and b) Aug, 2014 to January, 2016. Risk free rate of interest is given in the assignment. 11. Use Microsoft excel or calculator for this assessment. 8. 9. 2 Date Risk free rate of interest Date Feb-13 2.92 Mar-13 3.02 Apr-13 2.73 May-13 2.79 Jun-13 3.04 Jul-13 2.9 Aug-13 3.08 Sep-13 3.04 Oct-13 3.21 Nov-13 3.28 Dec-13 3.21 Jan-14 3.08 Feb-14 3.07 Mar-14 3.23 Apr-14 3.11 May-14 2.91 Jun-14 2.78 Jul-14 2.79 Risk free rate of interest Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 2.7 2.77 2.62 2.4 2.14 1.94 1.79 1.7 1.93 1.88 2.02 1.87 1.79 1.78 1.75 2.05 2.02 1.96