Listed below are the ANZ, New Zealand (Australia and New Zealand Banking Group Limited; ANZ.NZ) adjusted monthly closing price for the past year. Date ANZ Adjusted Close ** 1/08/2018 30.41 1/09/2018 29.23 1/10/2018 26.52 1/11/2018 27.08 1/12/2018 25.28 1/01/2019 25.77 1/02/2019 28.14 1/03/2019 26.57 1/04/2019 27.95 1/05/2019 28.64 1/06/2019 30.00 1/07/2019 29.17 1/08/2019 27.81

a) Calculate the standard deviation for the ANZ returns. (Hint: you would first have to calculate the return for each period.)

b) Your team is also curious about the standard deviation of Westpac, New Zealand (Westpac Banking Corporation; WBC.NZ) for the same period.

(i) Use the same data source to download the monthly adjusted closing prices for Westpac for the same time period as for ANZ.

(ii) Calculate the standard deviation for the Westpac returns for the same time period.

c) Compare the calculated ANZ and Westpac standard deviations. Relate your interpretation with risk.

photo is Westpac information

Close Adj. close Date Open High Low Volume 01 Aug 2019 29.88 30.19 28.50 29.95 29.95 416,668 29.64 29.90 01 Jul 2019 30.15 28.60 29.90 288,385 29.31 29.79 200,736 01 Jun 2019 30.09 28.50 29.79 16 May 2019 0.94 Dividend 01 May 2019 29.00 28.34 30.56 26.80 29.31 579,838 01 Apr 2019 27.15 28.19 29.30 27.05 29.15 275,497 01 Mar 2019 28.00 28.50 26.55 27.14 26.24 297,803 25.80 25.33 01 Feb 2019 28.40 28.03 27.10 268,706 01 Jan 2019 26.51 27.94 25.75 26.00 25.14 189,425 249,534 01 Dec 2018 27.88 28.03 24.50 26.51 25.63 13 Nov 2018 0.94 Dividend 29.40 416,574 01 Nov 2018 30.00 26.60 27.88 26.10 30.76 30.76 28.85 01 Oct 2018 27.86 27.01 453,485 01 Sep 2018 31.30 31.35 29.80 30.95 28.98 359,513 01 Aug 2018 32.20 33.50 30.05 31.30 29.31 493,151