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Conduct some research into the 2017/18 financial year performance of the largest players in the Australian grocery market Woolworth's and Coles by looking at the

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Conduct some research into the 2017/18 financial year performance of the largest players in the Australian grocery market Woolworth's and Coles by looking at the performance of the publicly listed companies which own these businesses, Woolworths Group Limited (WOW.AX) and Wesfarmers Limited (WES.AX). These two companies, through their Woolworth and Coles supermarket divisions, record approximately 61% of the more than $100 billion annual sales in the Australian grocery market (Roy Morgan Research Institute, 2018). r the 2017/18 financial year for Woolworths (WOW), Wesfarmers (WES) and the (0) Find the monthly holding period returns fo market (MKT) as proxied by the All Ordinaries index. The monthly holding period return is the return you would receive if you bought an asset on the first day of the month (opening price) and sold it on the last day of the month (closing price). Using Excel provide a line graph with the monthly returns for all three securities. Graph your results on one graph showing monthly returns for WOW, WES and the MKT over the year with percentage (%) return results plotted on the y (vertical) axis and time (month) on the xthorizontal) axis. (Use month closing price (12 marks). e Close' rather than 'Adjusted Close' for the selling price.) Note: Opening price MUST equal previous (ii) For each of the three investment options calculate the annual holding period return? (4.5 marks) (iv) For each of the three investment options calculate the standard deviation of the monthly rates of return (9 marks). (v) Use the and (iv) above with risk on the x axis and return on the y axis for each of the three investments (3.5 marks). (vi) If the 10 year government bond rate is 2.00% and the long term return on the market as proxied by the ASX is 5.75%, assuming the beta (B) for WOW is 0.77 and for WES is 0.81, use the Capital Asset Pricing Model (CAPM) to find the expected returns for Wow and WES (4 marks). scatter plot Excel graph function to plot your results from (ii)

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