Assessment 2 consists of a case study where you will apply financial concepts and theories into real

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Assessment 2 consists of a case study where you will apply financial concepts and theories into real life situations. These case studies will assess your knowledge of key content areas (Week 1 to 7 contents) and will identify further support needs. To successfully complete this assessment please study the material provided (lecture slides, tutorials, and reading materials), attend the classes, engage in the unit's activities, and participate in the discussion forums. The nature of this assessment is continuous evaluation. This is a group assignment and must be completed in a group of 2 students. Each group will be provided with two different companies by the lecturer in class and students need to research, identify, and analyze technical issues by locating and exploring information from yahoo finance. (Website: https://finance.yahoo.com)

i. Find the monthly holding period returns for July 2022 - June 2023 for Company 1 QAN (Qantas), Company 2 QBE insurance and the market (MKT) as proxied by the All-Ordinaries index. The monthly holding period return is the return you would receive if you bought an asset on the first day of the month (opening price) and sold it on the last day of the month (closing price). Using Excel, graph your % return results on one graph with returns on the y axis and time on the x axis to enable comparison between options. (Use 'Close' rather than 'Adjusted Close' for the selling price.) Note: Opening price MUST equal previous month closing price (15 marks). ii. For each investment, what is the average monthly holding period return? (8 marks) iii. For each investment, what is the annual holding period return? (8 marks) iv. Calculate the standard deviation of the monthly rates of return for each share and the market (9 marks). v. Using Excel plot your results from (iii) and (iv) above with risk on the x axis and return on the y axis (5 marks). vi. If the 10-year government bond rate is 3.25% and the long-term return on the market is 7%, assuming the beta () for Company 1 is 1.11 and for Company 2 is 0.95, use the Capital Asset Pricing Model (CAPM) to find the expected returns for both companies (8 marks). vii. Construct the Security Market Line (SML) showing where Company 1 and Company 2 lie (6 marks). viii. Based on your findings construct a portfolio made up of 60% Company 1 and 40% Company 2. Calculate the estimated return and for this portfolio (4 marks). ix. Based on your understanding of the CAPM and the SML, which of these asset(s) or portfolio(s) would you invest in and which would you not invest in. Explain your choice (7 marks).

solve this all the question with all the data in it and solve the numerical use the data from Website: https://finance.yahoo.com)