Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirements: (Data for the ASX AORD- the market, WOW, TLS, and JBH are attached below). Using the closing value, Perform necessary calculations to answer the

Requirements: (Data for the ASX AORD- the market, WOW, TLS, and JBH are attached below). Using the closing value, Perform necessary calculations to answer the following questions:

(5) Calculate and explain the correlation between (i) WOW and the market, (ii) TLS and the market, and (iii) JBH and the market over the period.

(6) Calculate the Beta of each of these three companies. If you construct a portfolio with 50% of your investment in WOW, 26% invested in TSL, and 24% invested in JBH, what is the Beta of this portfolio?

Data for ASX AORD:

image text in transcribed

Data for WOW:

image text in transcribed

Data for TLS:

image text in transcribed

Data for JBH:

image text in transcribed

Downloadable exel file can't be attached on this site so i have attached photos of the execl data.
\begin{tabular}{|c|c|r|r|r|r|} \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{c|}{B} & C & D & E \\ \hline 1 & 1/06/2022 & 6746.5 & & & \\ \hline 2 & 1/05/2022 & 7455.2 & & \\ \hline 3 & 1/04/2022 & 7724.8 & & \\ \hline 4 & 1/03/2022 & 7789.6 & & \\ \hline 5 & 1/02/2022 & 7323.2 & & \\ \hline 6 & 1/01/2022 & 7268.3 & & \\ \hline 7 & 1/12/2021 & 7779.2 & & \\ \hline 8 & 1/11/2021 & 7587.4 & & \\ \hline 9 & 1/10/2021 & 7639.1 & & \\ \hline 10 & 1/09/2021 & 7629.7 & & \\ \hline 11 & 1/08/2021 & 7823.3 & & \\ \hline 12 & 1/07/2021 & 7664.2 & & \\ \hline 13 & 1/06/2021 & 7585 & & \\ \hline 14 & 1/05/2021 & 7406.7 & & \\ \hline 15 & 1/04/2021 & 7290.7 & & \\ \hline 16 & 1/03/2021 & 7017 & & \\ \hline 17 & 1/02/2021 & 6940.6 & & \\ \hline 18 & 1/01/2021 & 6870.9 & & \\ \hline 19 & 1/12/2020 & 6850.6 & & \\ \hline 20 & 1/11/2020 & 6742.1 & \\ \hline 21 & 1/10/2020 & 6133.2 & & \\ \hline 22 & 1/09/2020 & 6009.3 & & \\ \hline 23 & 1/08/2020 & 6245.9 & & \\ \hline 24 & 1/07/2020 & 6058.3 & & \\ \hline 25 & 1/06/2020 & 6001.3 & & \\ \hline 26 & & & & \\ \hline \end{tabular}

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

The New Public Finance

Authors: Inge Kaul, Pedro Condeicao

1st Edition

0195179978, 978-0195179972

More Books

Students also viewed these Finance questions