Question: Must use excel and should include their data and calculations in a neat and easily readable way. The excel file does not contribute to the
Must use excel and should include their data and calculations in a neat and easily readable way. The excel file does not contribute to the page limit, and is for the purpose of documenting how you have made your calculations. Please ensure you place all student numbers in the header of the document.
1. Identify 3-4 stocks likely to benefit from the current Covid-19 pandemic.
2. Identify 3-4 stocks likely to be significantly adversely affected from the current Covid-19 pandemic.
3. Download six months of daily historical price data for each of these firms from Yahoo Finance, as well as data for the ASX200 (code = ^AXJO). Using the adjusted close price, calculate for each of your six firms the beta of the stock, as well as the standard deviation of returns.
4. Using an expected market return of 8% and a risk free rate of 1% calculate the expected return on your stocks given the calculated beta. Which stocks have the highest/lowest expected returns? What does this tell you about their level of expected risk?
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