Assessment: Report
Q1. Collect the data from "Yahoo Finance" and answer the following questions (using the instructions given below):
a) Collect the market price index (All Ordinaries), Share price for a company (as per instructions given in page 2) and display the data for two sub-periods separately in a table.
b) Calculate the return of share prices (rj) and market return (rm) (from market price index). Display the calculated returns along with the risk free rate of return (given in a separate excel file) in a table for two sub periods. Calculate and tabulate, (rj - RF) and (rm - RF).
c) Calculate the mean, standard deviation, variance, coefficient of variation and correlation coefficient for (rj - RF) and (rm - RF) separately (for two sub-period) and comment on the result.
d) Estimate beta (β) for your selected company for the two sub-periods.
e) Explain the value of beta that you have calculated.
f) Why the estimated value of beta is different for two sub-periods.
Instructions for assessment 2:
Data collection from Yahoo Finance:
1. Go to the Yahoo Finance Web page:
https://au.finance.yahoo.com/
2. On the left hand side enter Symbol or type the name of the Company and click "Look up". For example: Medibank Private. The symbol will come up, otherwise see the list (excel file) of companies and you will find the symbol.
Note: Choose a company from the list provided in the assignment (see the excel file). If your Surname starts with 'M', choose a Company whose name starts with 'M'. e.g. "Myer Holdings". You may not get the data for the specified periods for some new companies (e.g. for Medibank Private). In that case choose another company.
3. Click "Historical Prices" icon.
4. Next, Click "Monthly data" icon.
5. Set Data Range: Start date: February, 2013 and end date: January, 2016.
6. Click, "Get Prices"
7. In the bottom of the page click, "Download to Spreadsheet". Therefore, download the data and save.
8. Keep only "Date" and the "Adj Close". This will be the share price for your selected firm. (Please ignore the dividend paid. That is, delete dividend for each period)
9. Follow the same steps from 1. And collect the data for the same period for "All Ordinaries". This will be your market index.
10. Follow the lecture note and divide the data for two sub-periods: a) Feb, 2013 to July, 2014 and b) Aug, 2014 to January, 2016.
11. Risk free rate of interest is given in the assignment.
12. Students are allowed to use Microsoft excel or calculator for this assessment.
| Date |
Risk free rate of interest |
Date |
Risk free rate of interest |
| 13-Feb |
2.92 |
14-Aug |
2.7 |
| 13-Mar |
3.02 |
14-Sep |
2.77 |
| 13-Apr |
2.73 |
14-Oct |
2.62 |
| 13-May |
2.79 |
14-Nov |
2.4 |
| 13-Jun |
3.04 |
14-Dec |
2.14 |
| 13-Jul |
2.9 |
15-Jan |
1.94 |
| 13-Aug |
3.08 |
15-Feb |
1.79 |
| 13-Sep |
3.04 |
15-Mar |
1.7 |
| 13-Oct |
3.21 |
15-Apr |
1.93 |
| 13-Nov |
3.28 |
15-May |
1.88 |
| 13-Dec |
3.21 |
15-Jun |
2.02 |
| 14-Jan |
3.08 |
15-Jul |
1.87 |
| 14-Feb |
3.07 |
15-Aug |
1.79 |
| 14-Mar |
3.23 |
15-Sep |
1.78 |
| 14-Apr |
3.11 |
15-Oct |
1.75 |
| 14-May |
2.91 |
15-Nov |
2.05 |
| 14-Jun |
2.78 |
15-Dec |
2.02 |
| 14-Jul |
2.79 |
16-Jan |
1.96 |
Attachment:- companies names & code.rar