Question: FIN80005 Individual Assignment 2 Risk and Return Case Study After learning about the risk and return topics, you are interested to perform some analysis yourself

FIN80005 Individual Assignment 2 Risk and Return
FIN80005 Individual Assignment 2 Risk and Return Case Study After learning about the risk and return topics, you are interested to perform some analysis yourself concerning the risk and return trade-off of various asset classes. You also learn about the benefits of diversification and would like to examine whether there are diversification benefits from investing across asset classes. The asset classes that you intend to analyze are: 1} S&P ASXZOO Index 2} 5&P Aggregate Australian Bond index 3} S&P 500 Index 4} 5&PfASX A-REIT 100 5} Bitcoin (relative to USD) 6} Gold 7} Foreign exchange AUDIUSD The indices or prices for these asset classes are available from the Excel File named 'FIN30005 Index or Price for various asset classes'. They are downloaded from publicly available websites such as Yahoo Finance and S&P Global. Perform the following requirements and write a 1,500 words [excluding executive summary, references, and appendix) business report to report your findings. Additional marks will be rewarded for critical analysis and evaluation of the findings. Your report must be submitted in a Word/PDF format, with workings attached to the appendix of the report. Requirements: 1} Calculate the average return and standard deviation of these asset classes over the last five years from the start of 2015 to the end of 2020. Note that you are provided with index levels or prices so you will have to calculate returns for these asset classes. Provide brief commentary on the historical performance. (15 marks) 2i Analyze the historical return relationships of these asset classes. Provide brief commentary

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