Question
You are considering investing in Australian shares and decide to investigate the shares of two Australian companies: Woodside Petroleum Ltd (WPL.AX) and Commonwealth Bank of
You are considering investing in Australian shares and decide to investigate the shares of two Australian companies: Woodside Petroleum Ltd (WPL.AX) and Commonwealth Bank of Australia (CBA.AX).
Below are the opening prices, closing prices and dividends paid for WPL Ltd and CBA for the financial year 2018-2019.
Company | WPL | CBA | ||
Month | Opening Price | Closing Price | Opening Price | Closing Price |
Jul 2018 | 35.63 | 36.14 | 72.70 | 74.79 |
Aug 2018 | 36.00 | 36.87 | 74.38 | 71.24 |
Sep 2018 | 37.00 | 38.58 | 71.24 | 71.41 |
Oct 2018 | 38.44 | 34.85 | 71.13 | 69.23 |
Nov 2018 | 34.79 | 31.06 | 69.30 | 71.23 |
Dec 2018 | 31.30 | 31.32 | 72.06 | 72.39 |
Jan 2019 | 31.32 | 34.32 | 72.39 | 69.91 |
Feb 2019 | 34.25 | 36.25 | 69.23 | 73.95 |
Mar 2019 | 36.10 | 34.62 | 73.95 | 70.64 |
Apr 2019 | 34.65 | 35.39 | 71.00 | 74.52 |
May 2019 | 35.39 | 35.42 | 74.81 | 78.51 |
Jun 2019 | 34.50 | 36.36 | 78.06 | 82.78 |
WPL | CBA | ||
Date | Dividend | Date | Dividend |
23/08/2018 | 0.728022 | 15/08/2018 | 2.31 |
22/02/2019 | 1.27059 | 13/02/2019 | 2.00 |
Plot the efficient frontier of this two security universe (AMP and CSL) on a graph, include all data in a separate table and explain this graph. (Hint: Calculate return and SD of a series of portfolios starting from 100% WPL, 0% CBA to 0% WPL, 100% CBA and also include MVP.)
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