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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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