Question 3 (40 marks) Please find the data from excel below. Please note i tried very hard to type the data here because course hero doesnt allow excel upload. Please copy paste the data in excel worksheet for calculations and attach it with answer for reference.

Provide a recommendation as to which one of the two REITs below you would recommend to an investor. The investor intends to hold the investment for five years. The investor will retire at the end of the five years. Please provide detailed reasons for your recommendation. The two REITs that you can recommend are:

Vicinity Centres (VCX): https://www.vicinity.com.au/investor-centre/overview

Centuria Office REIT (COF): https://centuria.com.au/office-reit/home/

The monthly returns (including dividends) for the two REITs, the S&P/ASX300 Index, the S&P/ASX300 A-REIT Index and the risk-free rate are included in the Q3 tab of the FIN 223 Final Assessment.xlsx spreadsheet. You can also view REIT specific information on their websites listed above.

Date VCX COF S&P/ASX 300 S&P/ASX 300 A-REIT Risk-freerate

30/01/2015 5.93% 3.33% 3.28% 7.44% 0.23%

27/02/2015 -1.36% 3.23% 6.89% 3.69% 0.20%

31/03/2015 2.34% -1.34% -0.06% -1.96% 0.19%

30/04/2015 -2.65% 0.30% -1.70% -0.99% 0.19%

29/05/2015 3.37% -0.47% 0.40% 2.73% 0.18%

30/06/2015 -3.63% -1.32% -5.30% -3.97% 0.18%

31/07/2015 3.10% 0.00% 4.40% 5.67% 0.18%

31/08/2015 -5.34% -0.96% -7.79% -4.02% 0.18%

30/09/2015 -2.82% -0.84% -2.96% -0.28% 0.18%

30/10/2015 6.58% 2.02% 4.37% 4.87% 0.18%

30/11/2015 -6.55% -1.48% -0.68% -2.83% 0.19%

31/12/2015 3.80% 0.37% 2.73% 4.04% 0.19%

29/01/2016 4.45% 1.79% -5.48% 0.95% 0.19%

29/02/2016 7.37% 4.03% -1.76% 2.81% 0.19%

31/03/2016 3.08% -0.36% 4.73% 2.50% 0.19%

29/04/2016 4.52% 5.44% 3.37% 2.76% 0.19%

31/05/2016 -1.37% 1.41% 3.09% 2.68% 0.17%

30/06/2016 2.30% 1.04% -2.45% 3.53% 0.17%

29/07/2016 4.65% 4.67% 6.29% 5.36% 0.16%

31/08/2016 -3.89% 1.34% -1.55% -2.68% 0.15%

30/09/2016 -3.77% -1.15% 0.48% -4.31% 0.14%

31/10/2016 -9.03% -3.64% -2.15% -7.70% 0.15%

30/11/2016 2.28% 1.42% 2.99% 0.75% 0.15%

30/12/2016 2.92% 1.56% 4.38% 6.75% 0.15%

31/01/2017 -3.86% 2.81% -0.79% -4.71% 0.15%

28/02/2017 1.52% 4.54% 2.25% 4.13% 0.15%

31/03/2017 -1.53% 4.11% 3.32% 0.71% 0.15%

28/04/2017 2.24% 0.85% 1.03% 2.56% 0.15%

31/05/2017 -3.63% 2.11% -2.75% -1.00% 0.14%

30/06/2017 -6.39% 5.51% 0.17% -4.51% 0.14%

31/07/2017 7.58% -3.66% -0.01% -0.15% 0.14%

31/08/2017 -4.18% 0.41% 0.71% 1.51% 0.14%

29/09/2017 2.06% 1.90% -0.02% 0.57% 0.14%

31/10/2017 0.18% 0.00% 4.01% 2.25% 0.14%

30/11/2017 6.23% 0.82% 1.64% 5.29% 0.14%

29/12/2017 -2.38% 0.05% 1.81% 0.12% 0.15%

31/01/2018 -0.55% -0.84% -0.45% -3.25% 0.15%

28/02/2018 -7.34% -1.69% 0.36% -3.15% 0.15%

30/03/2018 -2.26% -0.19% -3.77% 0.11% 0.16%

30/04/2018 1.81% 2.19% 3.91% 4.28% 0.17%

31/05/2018 10.06% 2.15% 1.09% 2.98% 0.16%

29/06/2018 -2.51% 6.16% 3.27% 2.27% 0.17%

31/07/2018 3.24% 0.00% 1.39% 0.95% 0.17%

31/08/2018 4.69% 0.40% 1.42% 2.61% 0.16%

28/09/2018 -4.98% 3.42% -1.26% -1.55% 0.16%

31/10/2018 1.70% -6.01% -6.05% -3.12% 0.16%

30/11/2018 1.28% 1.28% -2.21% -0.27% 0.16%

31/12/2018 -2.15% 1.42% -0.12% 1.73% 0.17%

31/01/2019 0.94% 1.26% 3.87% 5.96% 0.17%

28/02/2019 -5.29% 2.08% 5.98% 1.80% 0.16%

29/03/2019 6.24% 3.82% 0.73% 6.04% 0.15%

30/04/2019 -1.78% 1.60% 2.37% -2.29% 0.14%

31/05/2019 2.14% 3.54% 1.71% 2.30% 0.13%

28/06/2019 -4.58% 8.09% 3.70% 4.16% 0.11%

31/07/2019 7.11% 1.07% 2.94% 2.61% 0.09%

30/08/2019 -0.23% 5.66% -2.36% 1.32% 0.08%

30/09/2019 -0.28% 3.60% 1.84% -2.73% 0.08%

31/10/2019 4.45% -1.97% -0.35% 1.37% 0.07%

29/11/2019 0.86% 6.04% 3.28% 2.26% 0.08%

31/12/2019 -6.61% -6.87% -2.17% -4.24% 0.08%

31/01/2020 2.57% 3.45% 4.98% 6.30% 0.07%

28/02/2020 -14.63% 1.66% -7.69% -4.69% 0.07%

31/03/2020 -51.86% -44.54% -20.65% -35.16% 0.04%

30/04/2020 44.68% 17.93% 8.78% 13.69% 0.01%

29/05/2020 8.51% 2.06% 4.36% 7.05% 0.01%