a. Choose two companies [i] from TWO different industries listed on the
Australian Securities Exchange (ASX). To view ASX listed companies, go to
b. To download the data, go to http://finance.yahoo.com
c. Find a search box titled “Get Quotes” & type the name of your first
company [i1]. Then click “Get Quotes”.
d. See the menu on the left-hand side. Click “Historical Prices” under
e. See “Set Date Range”. Set Start date as 30th April 2010 and End date as 31th
March 2015 (sample period). Click on “Monthly” button. Then Click “Get
f. 60 month-end price data should now be visible on the screen. Scroll down
until you see “Download to Spreadsheet”. Save the data to a file (You will
see that date on the spreadsheet is shown as month-start except for
30/04/2010). Don’t worry about them. They are actually month-end data.
However, ensure that the company you have chosen has a total of 60
month-end prices and does not exhibit a sudden drastic price fall arising
from a share split during the sample period. (If unsure, show your data to
g. You will see seven columns in the saved spreadsheet. All we need is Date
and Adj. close price [P]. Delete other columns. Currently, the data is in
descending order. Go to “Data” tab and click “Sort”. Select “Date” for Sort
by and “Oldest to Newest” for order. Click “OK”. The data should now be in
ascending order. Save the file again.
h. Replicate steps b to g to download data for your second company [i2].
i. Replicate steps b to g to download market index data [m]. For this
assignment, the market index “All Ordinaries” is to be used. Symbol to be
entered to “Get Quotes” box is ^AORD.
j. Display the following on the same spreadsheet, i) date, ii) Adj. close price
for your first stock [Pi1] , iii) Adj, close price for your second stock [Pi2] and
iv) Adj. close price for the market index [Pm]. Then save the file in Excel
format. At this point, you should have four columns and 61 rows (The
company names do not need to be presented here. Introduce your
company names in your report in Part II.)
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2. Calculate the monthly realised returns,[Ri1, Ri2, Rm], for your stocks and
market index. [2 marks]