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Analysis of asset returns includes the discussion on average

Assignment Help Portfolio Management
Reference no: EM132368267

You are an equity analyst in an investment bank.

• National Australia (NAB.AX) • BHP Billiton Limited (BHP.AX) • Wesfarmers Ltd (WES

Data sources
• Daily adjusted closing stock prices for companies:

Excel file containing the returns of above listed stocks are available in BAFN204 Individual Assignment Data file posted under Assessment in LEO.

Analysis period January 2, 2013-December

(a) Analysis of asset returns:
The analysis of asset returns includes the discussion on average return, maximum and minimum return and distribution of returns

(b) Portfolio Return and Risk:
You need a create a three-asset portfolio having the equal weighting for each stock above. After creating the portfolio, you need to analyse portfolio return and risk. 23.59 8 SEPTEMBER 2019 Cochlear (COH) Telstra (TLS) ANZ Bank (ANZ) 2 July 2014 - 28 June 2019 , 2019 references - References should be on a separate page.

(c) Risk Measure (Sharpe Ratio):
You need to calculate the Sharpe Ratio of each stock return, assuming the risk free return during the analysis period is 3% and choose the best stock on the basis of Sharpe Ratio. (d) Value at Risk (VaR): 30 marks You need to calculate the Value at Risk using a normal distribution at 95% confidence level for each stock listed above and choose the best stock on the basis ofVaR.

Verified Expert

COH is the best security for investment because of the having highest return and the highest Sharpe ratio showing the least risk security. LTS is the highest risk security because of the least Sharpe ratio and the lowest return. The developed portfolio is high risk at low return with the equal weight of all three securities.

Reference no: EM132368267

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len2368267

9/9/2019 5:38:30 AM

hi i need this help assesment but only en excel file with the answers. the only issue is that i need get the solution in the next 5 hours from today. let me know if that will be possible. ALL THE ANSWER IN EXCELL FILE WHERE CAN SEE THE FORMULAS how I get the answer. thanks

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