Finance

Estimate the expected rate of drive away of two companies stocks presently traded on the ASX using CAPM Table of Contents: 1.0 school principal 13,4 2.0 Question 25 -7 3.0 Question 37 4.0 Question 47,8 5.0 Question 58 -11 6.0 References:12 7.0 Appendices (Embeded via Excel)13 - 18 7.1 vermiform appendix 113 7.2 appendix 214 7.3 accessory 315 7.4 Appendix 415 7.5 Appendix 516 7.6 Appendix 617 7.7 Appendix 718 1.0 QUESTION 1. Compute the periodical returns, middling monthly return and monthly standard deviation for the stocks of the companies you chose and the All Ordinaries Index. When cipher the monthly returns for the stocks of the companies, you need to incorporate cash dividends (if any) and stock crush (if any) into your calculation. The two companies that have been analysed in this report are Telstra (TLS) and Harvey Norman (HVN). As this report will analyse each federations risk and return it made sense to carry two companies that are in very different industries.

Telstra was chosen as it is considered a defensive stock where its risk and return attributes are considered more static over the business cycle, whereas Harvey Norman is considered a more cyclical stock where its returns are tardily affected by the economic environment in wrong of consumer spending and levels of household disposable income. It is anticipated the contrast in the two stocks should display opposing risk and return behaviours. As seen in Appendix 1,3,4,6,7 the monthly returns were calculated by: (Pricet Pricet-1 + Dividendt)/Pricet-1 This commandment was used as there were no stock splits of the shares. The bonnie monthly return was calculated by adding up completely the monthly returns and dividing by the total number of months. The variance measures the disagreement in share price returns by taking the differences of the returns from the average return and squaring those differences. It is the standard deviation that... If you want to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.