You are interested in investing in Australian shares and decide to investigate the shares of two Australian companies: Commonwealth Bank of Australia (CBA.AX) and Woolworths Group Limited (WOW.AX). Below are the opening prices for CBA and WOW for 2023 and dividends paid by CBA and WOW during 2023.

	CBA	WOW
month	Opening price	Closing price	Opening price	Closing price
Jan	102.60	110.06	33.56	36.08
Feb	110.49	100.69	36.29	36.92
Mar	99.95	98.32	36.78	37.90
Apr	98.59	99.36	38.07	38.83
May	99.96	96.78	38.84	37.54
June	96.52	100.27	37.54	39.73
July	100.30	105.71	39.73	38.62
Aug	105.22	102.18	38.70	38.13
Sep	101.70	99.97	38.05	37.32
Oct	99.36	96.56	37.19	35.22
Nov	96.90	104.66	35.23	34.90
Dec	104.65	111.80	34.90	37.20

Share	Date	Dividend	Date	Dividends
CBA	21/02/2023	2.10	10/08/2023	2.40
WOW	1/03/2023	0.46	31/08/2023	0.58

1. Using the prices above calculate for CBA and WOW the percentage return for each month for the period Jan 2023- Dec 2023. The percentage return (%) for each month is the return you would receive if you bought an asset on the first day of the month (opening price) and sold it on the last day of the month (closing price) and include any dividends paid in that month.
2. Using the percentage returns calculated in part 1, calculate the standard deviation of the monthly percentage return for the CBA and WOW for the period Jan 2023 - Dec 2023.
3. Calculate annual holding period returns of CBA and WOW for the year 2023.
4. Now assume we have portfolio consisting of only CBA and WOW shares. If the covariance between CBA and WOW is 0.000851, calculate the return and standard deviation of a portfolio where:
   1. 40% of funds are invested in CBA and rest in WOW.
   2. 80% of funds are invested in CBA and rest in WOW.

(Hint: use annual holding period returns for calculation of portfolio returns)

5. Comparing the answers from parts 1,2 and 4 analyse and evaluate the differences in the risk return profile.