Please complete your answers in this excel workbook: Answer_File_(V2_2022).xlsm. Once you have finished your answers, upload your solutions to Canvas to be marked. In the worksheets Prices, Price-to-Book Values, and Number of Shares, you can find monthly share prices, price-to-book values, and number of shares outstanding during a 8-year period for a group of NZ stocks, respectively. Please note that the values of Number of Shares are downloaded from Refinitiv in units of thousand shares. In this assignment, students are asked to build a model to compare the performance between the value and momentum investing strategies for an equity portfolio. Assume that the initial amount invested in this portfolio is $1,000,000. The model should allow the user to conduct an analysis of comparing their profitability and decide which strategy to implement. These two strategies considered are described as follows. 1. In this assignment, we can implement value strategy in three steps. First, we need to identify value and growth stocks for each month. The value stocks are those with the price-to-book ratios lower than the 20th percentile of this ratio among all the companies in the sample this month, and grow stocks are those with the price-to-book ratios higher than the 80th percentile, respectively. Second, we can build a portfolio that buys the value stocks and sells the growth stocks at the end of each month. Third, we need to rebalance our portfolio monthly, i.e. each month we should update the value stocks that we are buying and the growth stocks that we are selling. 2. Similarly, we can implement momentum in four steps. First, for each month and each stock, we compute the average return over the last 12 months, excluding the most recent month. Second, we can identify good and bad performers each month, based on this average turn during the previous 11 months, i.e. months [-12,-2]. Specifically, in this assignment, we identify good performers as those with the average returns higher than the 80th percentile of this return of all the companies in the sample this month, and bad performers as those with the average returns lower than 20th percentile, respectively. Third, we can build a portfolio that buys the good performers and sells the bad performers. Last, we need to rebalance our portfolio monthly, i.e. each month we should update the good performers that we are buying and the bad performers that we are selling.

Price:

Date/Company	ACCORDANT GROUP	AFC GROUP HOLDINGS	AFT PHARMACEUTICALS	AIR NEW ZEALAND	ALLIED FARMERS
1/07/14	2.48	0	#N/A	1.29	0.47
1/08/14	2.38	0	#N/A	1.17	0.41
1/09/14	2.36	0	#N/A	1.33	0.72
1/10/14	2.62	0	#N/A	1.21	0.73
1/11/14	2.51	0	#N/A	1.23	0.79
1/12/14	2.52	0	#N/A	1.51	0.73
1/01/15	2.48	0	#N/A	1.51	0.65
1/02/15	2.38	0	#N/A	1.61	0.64
1/03/15	2.39	0.01	#N/A	1.78	0.6

Price to book value:

#NAME?	ACCORDANT GROUP - PRICE TO BOOK VAL	AFC GROUP HOLDINGS - PRICE TO BOOK VAL	AFT PHARMACEUTICALS - PRICE TO BOOK VAL	AIR NEW ZEALAND - PRICE TO BOOK VAL	ALLIED FARMERS - PRICE TO BOOK VAL
1/07/14	2.28	-1.61	#N/A	1.2	-3.36
1/08/14	2.19	-1.61	#N/A	1.09	-2.97
1/09/14	2.17	-1.61	#N/A	1.24	-5.21
1/10/14	2.41	-2.15	#N/A	1.12	-5.27
1/11/14	2.31	-2.15	#N/A	1.15	-5.67
1/12/14	2.32	-2.15	#N/A	1.41	-5.27
1/01/15	2.28	-0.54	#N/A	1.41	-4.68
1/02/15	2.19	-1.08	#N/A	1.5	-4.61
1/03/15	2.2	-5.38	#N/A	1.66	-4.28

number of shares:

Date/Company	ACCORDANT GROUP - NUMBER OF SHARES	AFC GROUP HOLDINGS - NUMBER OF SHARES	AFT PHARMACEUTICALS - NUMBER OF SHARES	AIR NEW ZEALAND - NUMBER OF SHARES	ALLIED FARMERS - NUMBER OF SHARES
1/07/14	25805	534080	#N/A	1111790	105471
1/08/14	25805	534080	#N/A	1111908	105471
1/09/14	25805	534080	#N/A	1111908	105471
1/10/14	25805	534080	#N/A	1115930	106631
1/11/14	25805	534080	#N/A	1115930	106631
1/12/14	25805	534080	#N/A	1115960	106631
1/01/15	25805	534080	#N/A	1120300	106631
1/02/15	25805	534080	#N/A	1120660	106631
1/03/15	32463	534080	#N/A	1120558	106631

Please answer Question 1 and Question 2please, tia :)