Hello there,
I have a Finance Assignment which I will need back by Saturday early morning
I need to show all the formula's and all the calculations step by step included in the answers.
I have chosen the following companies:
Billabong, Kathmandu, Pacific Brands
The Assignment Questions are in the file is called 'Assignment Questions'
I have also attached the files with the monthly Stock prices for the answers to questions A, B, C ( 3 x files attached with Datanalysis written in the file name)
The Yahoo finance AORD For questions D, E, F still needs to be downloaded - and are accessible to anyone if you follow the step by step instructions . (File name Assignment instructions step-by step
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Deakin Graduate School of Business
MPF753 – Finance: Assignment 2-­- Trimester 3, 2014
General Information
1. This assignment makes up 30% of your total assessment in this unit.
2. Due Date: Monday 12th January 2015 (Week 8) no later than 4:59 pm (AEST).
A request for a time extension must be made in writing (which must include documentary evidence such as medical certificate) addressed to the Assignment Coordinator r.xiao@deakin.edu.au at least one day before the due date. Please note that since students will have several weeks to complete this assignment and are expected to make a diligent use of that allotted time, being unfit on the due date or just one or two days prior to the due date may not be an acceptable ground for an extension to be granted. Assignments submitted after the deadline without a time extension being approved by the Assignment Coordinator will not be marked.
3. This assignment is to be completed in a group of two (or individually if prior permission has been sought from the Assignment Coordinator). MPF953 students must make an individual submission. The first page of your assignment report must clearly show the full names and student ID numbers of both group members.
4. The word limit is 2000 words (excluding tables, figures, appendices and reference list).
5. Marked assignment report and feedback will be returned to you within 15 working days (2nd February, 2015) of the due date (or extended due date of the assignment if the time extension has been granted).
Group Submission: As a ‘group of two’ students or a ‘group of one’ via CloudDeakin
1. Your assignment must be lodged electronically via the CloudDeakin site for this Unit.
Please DO NOT submit your assignment by email or send us a hard copy under any circumstances.
Please submit your assignment as a SINGLE MS-­-Word document (no PDFs or other file formats).
2. We will add a link called 'Groups' to the navigation bar on CloudDeakin after 15th December 2014. Please use this link to register your assignment group before 5th January 2015 4:59pm
(AEST) -­- You can register in a group of 2 students (or group of 1 for individual submission). Marks may be deducted if you fail to register by 5th January 2015 4:59pm.
3. Please coordinate your enrolment with your group partner; if you make a mistake or if you wish to change the group please email the details (e.g., name, student ID number, wrongly registered group number) to Dr Robert Xiao: r.xiao@deakin.edu.au
4. Please do not ‘force’ yourself into someone else’s group unless you have consent to do so – You will be removed from the group if this happens and your submission would not be considered as valid!
How to submit your file
1. Please ensure that you name your WORD document with your student number, if you submit in a group; please name it with both student numbers, e.g. 1234508_1234509.doc or 1234566.doc (if submitted as an individual assignment).
2. Ensure to submit ONE MS WORD file only, workings in excels is to be embedded into the word file (embedded means the marker can click on your table which will then open in excel, so we can check your workings). Do not submit separate files.
3. You must include a comprehensive list of references for both your data sources as well as citations. You are required to use either Harvard system or APA system for referencing.
4. There is no official assignment cover sheet. Before submitting your assignment report, please read the plagiarism and collusion declaration section in the assignment submission dropbox.
5. Also, please be aware that the Turnitin © function is provided to help you check the originality of your work and make changes if warranted. However submitting to Turnitin does not mean a submission for purpose of assessment – all final submissions must go through the drop-­-box. If needed, you will be able to make changes to the assignment document even after submission into the drop-­-box – the drop-­-box will allow multiple submissions until the due date (each attempt overrides previous attempts – so the last submitted version of your assignment is retained in the system).
6. All submissions will be checked for plagiarism using the Turnitin© software. If plagiarism is suspected for an assignment, it will automatically be referred to the Faculty’s Student Misconduct Committee and thereafter it will be entirely the FSMC’s decision as to what happens next – the unit teaching team would have no further role in that regard and would act on the advice of the FSMC.
Deakin Graduate Learning Outcomes
1. Discipline-­-specific knowledge and capabilities: appropriate to the level of study related to a discipline or profession.
2. Digital literacy: using technologies to find, use and disseminate information.
Step-­-by-­-Step instructions on Data Access for Assignment 2
How to download adjusted month-­-end share prices using DatAnalysis Premium:
Step 1: Please open the Deakin University library website: www.deakin.edu.au/library
Step 2: In the search field please enter the words “DatAnalysis Premium” and click on “Search”
Step 3: Your search will return a weblink: “DatAnalysis Premium” – please click on that weblink. Step 4: After you have clicked on the weblink the following information should be displayed.
MPF753 T3 2014 – Assignment Part 2 Due by: 4:59PM Monday, 12th Jan 2015
Q1. Pick any three companies with shares currently listed on the ASX that have been trading for at least five years. Go to DatAnalysis (accessible via Deakin Library website) and download the adjusted month-­end closing stock prices of these companies for the previous 61 months ended 31/10/2014 onto a MS Excel spreadsheet. Use the downloaded data and perform necessary calculations to answer the questions a) to c):
a) Compute the individual monthly returns, average monthly return, variance and standard deviation of the monthly returns for the stocks of the companies you have chosen.
(5 marks)
b) Using the various statistics calculated in a), state which stock has the highest expected return, which stock has the highest total risk and which one has the highest expected return per unit of total risk.
(3 marks) c) Would the stock with the highest total risk in b) necessarily be the ‘riskiest’ of the three stocks? Explain.
(2 mark)
Go to Yahoo Finance and download the adjusted month-­-end closing value of the ASX All Ordinaries Index
(AORD) for last 61 months ended 31/10/2014. Perform necessary calculations to answer questions d) to f):
d) Use the month-­-end adjusted closing values of the AORD to compute individual monthly returns on the market index.
(2 marks)
e) Briefly describe the beta estimation process as per the CAPM. Using the information in d) along with the individual monthly returns on each of the three stocks calculated in a), estimate their betas. What do these betas tell you about the riskiness of these three stocks relative to the market? Assuming a 3%
p.a. risk-­-free rate, calculate the expected return on each of the three stocks using CAPM.
(4 marks)
f) What would happen to the expected rates of return for a risk-­-free rate of 4.5% per annum? What would they be if the risk-­-free rate was 1.5%? Explain your observations in light of the risk-­-return relationship.
(4 marks)
Q2. The application of the CAPM in modern financial markets has been much debated and criticized from an empirical point of view. Does this imply that the theory underlying CAPM is flawed? Outline your argument. Should we reject the model outright? If you think that the model should be rejected, provide alternative model(s) to replace it with empirical studies to support your choice. Otherwise, provide the
reasons why CAPM should be kept. (Maximum 1000 words for Q2)
(10 marks)
Total: 30 marks