Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required companies for this assignment are 1.CASSIUS MINING LIMITED, CMD, Company type:Materials 2.EXPOSE RESOURCES LIMITED, EXX, Company type:Materials Please show me working in an excel

image text in transcribed

Required companies for this assignment are

1.CASSIUS MINING LIMITED, CMD, Company type:Materials

2.EXPOSE RESOURCES LIMITED, EXX, Company type:Materials

Please show me working in an excel file for more clarity with supporting graphs and additional resources.

This assignment is for Financial Management Theory course. So please support this assignment with related working.

This is not for Copy/Paste. This is only for making sure I am following correct format to do this assignment. I am currently working on 2 different company named below

  1. QUANTUM HEALTH GROUP LIMITED QTM Company Type: Health Care Equipment & Services

2. JAPARA HEALTHCARE LIMITED JHC Company Type: Health Care Equipment & Services

image text in transcribed
Assignment guidelines and questions 1. Select companies Short list two companies according to steps explained on the previous page (the company list is provided on Moodle in the Excel le in the \"Assignment\" folder). Verify that each selected company has been trading on the Australian Securities Exchange (at least) between March 2017 and March 2019. 2. Risk and return analysis (i) Collect monthly share price data for the selected two companies between March 2017 and March 2019. Calculate realised monthly return each period for each of the selected companies using share prices between March 2017 and March 2019 (note that you are permitted to use a longer investment period if data is available for your selected companies). (5 marks) (ii) Assume we use the estimated ASX 200 index returns as proxy for the market return. Collect monthly market index data for ASX 200 between March 2017 and March 2019. Calculate realised monthly ASX 200 index return each period between March 2017 and March 2019 (note that the sample period should be consistent with question 2(i)). (5 marks) (iii) Calculate average monthly return, variance, and standard deviation of returns for the two companies and ASX 200, respectively, using the realised returns you calculated in previous two step. (5 marks) (iv) Calculate the beta for the two companies. Compare the beta of the two companies and discuss why the beta of the two companies are different or similar up to maximum of 300 words. (15 marks) (v) Use the Capital Asset Pricing Model (CAPM) to estimate the stock returns for the two companies, respectively, if the monthly risk free rate is 0.18% (hint: use the ASX 200 index returns as the market proxy). Compare the return you estimated to the current return of the two stocks and discuss your results - up to maximum of 300 words. (15 marks) 3. Clarity of supporting materials/references and contribution of each group member

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

15th edition

ISBN: 134796551, 134796550, 978-0134796550

More Books

Students also viewed these Finance questions

Question

Is there any formal training for teaching?

Answered: 1 week ago