Question $2(5$ points$)$

You are provided with two sets of daily values of the following indices in the last five years $($attached$)$:

$$ S&P$/$ASX$200$ Franking Credit Adjusted Daily Total Return Index Tax Exempt $($Bloomberg: SPAX$2$F$0)$

$$ S&P$/$ASX$200$ Total Return Index $($Bloomberg: AS$51$T$)$

Further information about the indices is available if you search "Question $2(5$ points$)$

You are provided with two sets of daily values of the following indices in the last five years $($attached$)$:

$$ S&P$/$ASX$200$ Franking Credit Adjusted Daily Total Return Index Tax Exempt $($Bloomberg: SPAX$2$F$0)$

$$ S&P$/$ASX$200$ Total Return Index $($Bloomberg: AS$51$T$)$

Further information about the indices is available if you search on google $"$S&P$/$ASX Australian Indices Methodology betashares february" it has to be february $2020!$

a$)$ Please calculate the annualised return of the two indices over the last five years $($using the data file provided$)(3$ points$)$

b$)$ Explain what franking credit is and explain the difference $($if any$)$ between the two returns you calculated $(2$ points$)$