(Pdf) Finance Assessment Report: Australian Stock Exchange Limited / ASX Futures Exchange Limited 2022
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Added on 2020-06-03
(Pdf) Finance Assessment Report: Australian Stock Exchange Limited / ASX Futures Exchange Limited 2022
Added on 2020-06-03
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11 Analysing the treasury notes rate of Australia....................................................................12. Measuring the monthly returns of each shares with the help of share price indices andmarket price index..................................................................................................................13. Analysing the expected return of each shares....................................................................14. Measuring the Beta value of each shares..........................................................................15. Determining the fair return with the help of capital asset pricing model...........................26 & 7. Presenting the graph for analysing the security market line.......................................28 & 9 Preparing the portfolio and calculating the rate of return, beta value..........................810. Conclusion......................................................................................................................13REFERENCES..............................................................................................................................14APPENDIX....................................................................................................................................15
INTRODUCTIONIn order to analyse profitability of the Australian Stock Exchange listed companies thereis need to measure their market value as well as efficiency in meeting the debts. In the presentstudy there will be measurements over the 7 organisations which has the appropriate marketvalue and have the sufficiency equity in the market. The report will be based on analysing the 7companies such as AGL Energy Limited, ANZ Banking group Limited, BHP Billiton Limited,Macquarie group limited, National Aust. Bank, Telstra Corporation and Westfield Corp StapedSecurities.1 Analysing the treasury notes rate of AustraliaIn order to analyse the risk free rate of Treasury Notes in Australia which were on thebasis of the shortest maturity (Brock, 2018). Therefore, the analysis can be seen in the belowlisted Appendix A. The collected information were from 1 January 2000 to 31st December 2017.2. Measuring the monthly returns of each shares with the help of share price indices and marketprice indexBy considering the share value of 7 ASX listed corporations there has been analysisbased on determining the risk free rate and market rate (Joy, 2018). However, all the organisationhas been analysed and they present the risk free rate as in Appendix B.3. Analysing the expected return of each sharesThe average of rate return for all the corporation which will be seen in Appendix B.therefore, it beings the analysis as National Aust. Bank 0.90%, Telstra Corporation 0.81%Westfield Corp Stapled Securities 0.78%,Macquarie group limited 0.84%, ANZ Banking grouplimited 1.18%, BHP Billiton Limited 1.18% and AGL energy Limited 1.53%. Therefore, inrelation with analysing such operations it can be said that ANZ, AGL & BHP are to mostprofitable industries in terms of giving the favourable returns to their clients (Lafortune,Rothstein & Schanzenbach, 2018).4. Measuring the Beta value of each sharesTo analyse the beta value of the proposed data set there has been use of SLOPE formulain excel sheet and which represents the Beta value of such data base (Guthman, 2018).companiesbeta value (slope)BetaValue1
National Aust. Bank(ra)0.002541.406Telstra Corporation-0.00066-0.458Westfield Corp StapledSecurities0.001491.124Macquarie group limited0.001741.130ANZ Banking group limited0.002441.328BHP Billiton Limited0.001320.530AGL energy Limited0.003730.928In consideration with analysing the Beta value of the industries it can be said that thosefirms who have beta rate more the 1 than there share value id volatile and can have variation inthe future (Cerchiello & Nicola, 2018). On the other side, those industries which has lower betarate than 1 than the prices of their shares will remain constant for the long period.5. Determining the fair return with the help of capital asset pricing modelTo determining the CAPM value there is need to consider all the information which willbe useful for analysis (Rocheteau, Wright & Zhang, 2018). Moreover, the CAMP value of theserespected industries is:NationalAust.BankTelstraCorporationWestfield CorpStapledSecuritiesMacquariegrouplimitedANZBankinggrouplimitedBHPBillitonLimitedAGLenergyLimitedriskfreerate1.3031.3031.3031.3031.3031.3031.303marketrisk0.90%0.81%0.78%0.84%1.18%1.18%1.53%betavalue-0.5870.2411.298-3.230-0.3591.837-0.379CAPM2.0630.990-0.3795.4851.767-1.0681.7916 & 7. Presenting the graph for analysing the security market lineNational Aust. Bank:2
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