Simone is interested in three ASX-listed healthcare companies, Cochlear Ltd. (COH.AX), Ramsay Health Care Ltd. (RHC.AX) and Ansell Ltd. (ANN.AX). Her stock broker collected their year-end adjusted closing prices between 2003 and 2018 (see ?Stock Prices.xlsx? in CloudDeakin ?Assessment Resources - Group Assignment? folder), and Simone asks you to conduct some preliminary analysis.

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a. Use EXCEL to calculate the expected return and standard deviation (risk) for these three common shares. b. Rank them in terms of their risk-return profile, where 1 represents the best and 3 represents the worst, and present a summary table in WORD file. Hint: if additional indicator is needed for comparison, please compute and demonstrate it to support your conclusion. COH.AX RHC.AX Rank Expected Return E(R) Standard Deviation (o) c. Use EXCEL to produce a correlation coefficient (p) matrix and present it in WORD file. RHC.AX ANN.AX COH.AX 1 COH.AX RHC.AX ANN.AX 1 d. Which two shares have the highest p? Use their business background to explain these p Portfolio I readings. e. Consider three portfolios with weights allocated to each stock as shown in the table below. II ANN.AX COH.AX 35% 0% Rank Expected Return E(R) Standard Deviation (o) 1 RHC.AX ANN.AX 0% 65% 30% 70% III 60% 0% Which portfolio is expected to demonstrate WORST risk-return profile? Why? Hint: calculation is not necessary. f. Use EXCEL to compute risk and return of portfolio I, II & III. Rank these investments with the same criteria and present it in WORD file. COH.AX RHC.AX ANN.AX 40% III a. Use EXCEL to calculate the expected return and standard deviation (risk) for these three common shares. b. Rank them in terms of their risk-return profile, where 1 represents the best and 3 represents the worst, and present a summary table in WORD file. Hint: if additional indicator is needed for comparison, please compute and demonstrate it to support your conclusion. COH.AX RHC.AX Rank Expected Return E(R) Standard Deviation (o) c. Use EXCEL to produce a correlation coefficient (p) matrix and present it in WORD file. RHC.AX ANN.AX COH.AX 1 COH.AX RHC.AX ANN.AX 1 d. Which two shares have the highest p? Use their business background to explain these p Portfolio I readings. e. Consider three portfolios with weights allocated to each stock as shown in the table below. II ANN.AX COH.AX 35% 0% Rank Expected Return E(R) Standard Deviation (o) 1 RHC.AX ANN.AX 0% 65% 30% 70% III 60% 0% Which portfolio is expected to demonstrate WORST risk-return profile? Why? Hint: calculation is not necessary. f. Use EXCEL to compute risk and return of portfolio I, II & III. Rank these investments with the same criteria and present it in WORD file. COH.AX RHC.AX ANN.AX 40% III

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Return has been calculated as the change between the successive price Say for example COHAX return f... View the full answer