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Below is the monthly share price data for Westpac Banking Corporation (ASX code WBC.AX) for 2021. Month Open $ Close $ Jan 19.37 21.13 Feb
- Below is the monthly share price data for Westpac Banking Corporation (ASX code WBC.AX) for 2021.
Month | Open $ | Close $ |
Jan | 19.37 | 21.13 |
Feb | 20.80 | 23.82 |
Mar | 23.87 | 24.41 |
Apr | 24.42 | 24.98 |
May | 25.71 | 26.42 |
June | 26.29 | 25.81 |
July | 25.94 | 24.52 |
Aug | 24.65 | 25.82 |
Sep | 25.63 | 26.00 |
Oct | 25.61 | 25.67 |
Nov | 24.50 | 20.52 |
Dec | 20.50 | 21.35 |
Westpac paid a dividend of $0.58 per share on 13 May 2021 and a dividend of $0.60 per share on 5 November 2021.
- Calculate the monthly percentage returns for WBC for 2021including the dividends paid.
- Calculate the average monthly return (%) for WBC.
- Calculate the risk measured by the standard deviation for WBC.
- If the correlation between WBC shares and ANZ Bank shares is 0.9989, what level of diversification will you be able to achieve if you create a portfolio consisting of only these two shares? Explain with equations and graph.
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