Question: 2 (Risk and return): (50 marks) This case requires you to perform calculation on risk and return using company data for the company that you

2 (Risk and return): (50 marks) This case requires you to perform calculation on risk and return using company data for the company that you recommended in Case 1 above Collect the monthly prices of stocks of X Ltd and monthly prices of S&P/ASX 200 (^AXJO) over the period 1 July 2014 to 30 June 2019. Using the price data, perform the following calculations and suggest on the suitability of investing in stocks of FMG Ltd: 1. Monthly returns from stocks of X Ltd (5 marks) 2. Yearly returns from stocks of X Ltd (5 marks) 3. Average yearly returns over the five years from stocks of X Ltd (5 marks) 4. Monthly returns from ^AXJO (5 marks) 5. Yearly returns from ^AXJO (5 marks) 6. Average yearly returns over the five years from ^AXJO (5 marks) 7. Total risk associated to investment in X Ltd (perform one calculation using 60 monthly returns) (5 marks) 8. Total risk associated to investment in ^AXJO (perform one calculation using 60 monthly returns) (5 marks) 9. Systematic risk of stocks of X Ltd (perform one calculation using 60 monthly returns) (5 marks) 10. Unsystematic risk of stocks of X Ltd (perform one calculation using 60 monthly returns). On the basis of the above calculations do you think X Ltd is a good investme

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