Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The airline industry is severely hit by the COVID-19.Rows 6 to 85 show the daily closing prices of three stocks (i.e.,Qantas Airways Limited (QAN.AX), Singapore

The airline industry is severely hit by the COVID-19.Rows 6 to 85 show the daily closing prices of three stocks (i.e.,Qantas Airways Limited (QAN.AX), Singapore Airlines Limited (C6L.SI), and Cathay Pacific Airlines (0293.HK)) in the airline industry between 1 March 2021 and 23 June 2021. The data were collected from Yahoo Finance. When answering these questions, ignore dividends and assume all prices are in the same currency

image text in transcribed

image text in transcribed

a. (5 marks) Design an Excel financial model that can help to evaluate this investment plan. Marks will be allocated for the presentation and clarity of your model (e.g., if there are clear headings, clear arrangement for input cells, appropriate use of colors, have some degree of flexibility, generate warning messages for wrong user inputs, etc.). The Excel financial model should enable you to consider the investment plan and answer the following questions: b. (3 marks) For each stock, show the daily stock returns. c. (3 marks) Based on the responses in part (b), calculate the average daily stock returns and standard deviation for each stock. d. (2 marks) Calculate the correlation of daily stock returns between each pair of stocks.

Singapore Airlines Limited (C6L.SI) Date Qantas Airways Limited (QAN.AX) 2021/3/1 2021/3/2 2021/3/3 2021/3/4 2021/3/5 2021/3/8 2021/3/9 5 6 7 8 9 10 11 12 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 2021/3/10 2021/3/11 2021/3/12 2021/3/15 2021/3/16 2021/3/17 2021/3/18 2021/3/19 2021/3/22 2021/3/23 2021/3/24 2021/3/25 2021/3/26 2021/3/29 2021/3/30 2021/3/31 2021/4/1 2021/4/6 2021/4/7 2021/4/8 2021/4/9 2021/4/12 2021/4/13 2021/4/14 2021/4/15 2021/4/16 2021/4/19 2021/4/20 2021/4/21 2021/4/22 2021/4/23 2021/4/26 2021/4/27 2021/4/28 5 4.89 5.03 5.08 5.1 5.02 5.14 5.17 5.3 5.3 5.5 5.48 5.45 5.41 5.35 5.33 5.21 5.13 5.11 5.11 5.07 5 5.09 5.1 5.26 5.4 5.42 5.45 5.32 5.27 5.21 5.2 5.18 5.08 5.01 4.94 5.01 4.99 4.93 4.9 4.97 Cathay Pacific Airlines (0293.HK) 5.24 7.29 5.18 7.4 5.21 7.41 5.15 7.46 5.15 7.41 5.15 7 5.31 71 5.22 7.06 5.32 7.39 5.3 7.36 5.63 7.56 5.66 7.56 5.67 7.71 5.71 7.89 5.7 7.62 5.68 7.63 5.64 7.25 5.53 6.91 5.59 7.09 5.54 7.2 5.55 7.21 5.61 7.32 5.55 7.25 5.59 7.24 5.59 7.23 5.64 7.23 5.7 7.1 5.69 7.06 5.72 7.07 5.6 7.08 5.53 7.02 5.5 7.15 5.34 7.13 5.4 7.09 5.23 6.94 5.08 7 4.99 6.9 5.05 7.07 5.03 7.1 5.13 6.98 5.3 6.93 A B D E 6.85 6.7 6.79 6.67 6.53 6.51 6.63 6.62 6.42 6.4 6.42 6.39 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 2021/4/29 2021/4/30 2021/5/3 2021/5/4 2021/5/5 2021/5/6 2021/5/7 2021/5/10 2021/5/11 2021/5/12 2021/5/13 2021/5/14 2021/5/17 2021/5/18 2021/5/19 2021/5/20 2021/5/21 2021/5/24 2021/5/25 2021/5/26 2021/5/27 2021/5/28 2021/5/31 2021/6/1 2021/6/2 2021/6/3 2021/6/4 2021/6/7 2021/6/8 2021/6/9 2021/6/10 2021/6/11 2021/6/15 2021/6/16 2021/6/17 2021/6/18 2021/6/21 2021/6/22 2021/6/23 5 4.95 4.94 4.93 4.81 4.74 4.77 4.71 4.66 4.5 4.4 4.45 4.55 4.6 4.52 4.68 4.74 4.72 4.71 4.67 4.69 4.81 4.71 4.71 4.79 4.91 4.87 4.78 4.84 4.81 4.77 4.71 4.72 4.72 4.71 4.85 4.67 4.73 4.72 5.15 5.13 5.06 4.95 4.97 4.82 4.84 4.95 4.87 4.8 4.77 4.5 4.64 4.86 4.7 4.76 4.77 4.74 4.86 4.96 4.96 4.98 4.99 4.95 4.93 4.9 4.88 4.9 5.02 5.12 5.15 5.13 5.08 4.92 4.99 5.05 4.98 4.98 5.02 6.51 6.52 6.57 6.63 6.68 6.77 6.79 6.77 6.68 6.65 6.79 6.8 6.79 6.76 6.87 6.94 7.06 7.07 6.99 6.87 6.88 6.93 7.09 6.93 6.91 6.86 6.81

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

Cross-Border Mergers And Acquisitions UK Dimensions

Authors: Moshfique Uddin, Agyenim Boateng

1st Edition

0415836603, 9780415836609

More Books

Students also viewed these Accounting questions

Question

Can laboratory experiments provide insights into everyday lifepg15

Answered: 1 week ago

Question

What training is required for the position?

Answered: 1 week ago