Statistics Assignment on Australian Stock Exchange, Apartment Prices and Employment Type in Australia

Statistics
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Question 1 4 Marks
Visit the Australian Stock Exchange website, www.asx.com.au and from “Prices and research” drop-
down menu, select “Company information”. Type in the ASX code “CSR” (CSR Limited), and find out
details about the company. Also, type in the ASX code “SFR” (Sandfire Resources NL), and find out the
details about that company. Both these companies belong to material sector. Information available in the
ASX website will be inadequate for your purpose, you will need to search the internet for more
information. Your task will be to get the opening prices of CSR and SFR shares for every quarter from
January 2008 to December 2017 (unadjusted prices). If you are retrieving the monthly prices, read the
values in the beginning of every Quarter (January, April, July, October) for every year from 2008 to 2017
(Total 40 observations). To provide you with some guidance as to what the unadjusted prices look like,
two charts accompany this question obtained from ANZ Share Investing, Australia. After you have
researched share prices and financial sector, answer the following questions:
(a) List all the quarterly opening price values in two tables, one for CSR and the other for SFR. Then
construct a stem-and-leaf display with one stem value in the middle, and CSR leaves on the right
side and SFR leaves on the left side. (Must use EXCEL or similar for the plot.) 1 mark
Answer
Quarter CSR SFR Quarter CSR SFR Quarter CSR SFR
Mar-08 3.220 6.833 Sep-11 4.040 7.046 Mar-15 4.010 6.146
Jun-08 4.100 6.659 Dec-11 4.060 6.206 Jun-15 3.890 7.842
Sep-08 3.450 7.200 Mar-12 4.130 6.043 Sep-15 3.900 5.734
Dec-08 3.293 6.367 Jun-12 3.210 5.900 Dec-15 3.920 7.214
Mar-09 2.264 7.313 Sep-12 4.560 5.171 Mar-16 3.950 5.906
Jun-09 2.170 7.966 Dec-12 4.320 7.714 Jun-16 3.950 5.005
Sep-09 2.090 5.332 Mar-13 4.210 7.226 Sep-16 3.980 6.677
Dec-09 3.450 6.901 Jun-13 4.210 5.720 Dec-16 4.200 7.565
Mar-10 3.260 5.386 Sep-13 4.560 6.863 Mar-17 4.210 5.610
Jun-10 3.900 7.892 Dec-13 4.250 6.491 Jun-17 4.450 5.538
Sep-10 3.860 5.331 Mar-14 4.310 5.666 Sep-17 4.480 7.020
Dec-10 3.950 6.327 Jun-14 4.430 6.049 Dec-17 4.490 7.503
Mar-11 3.970 5.309 Sep-14 4.210 6.681
Jun-11 4.010 5.981 Dec-14 4.150 7.943
CSR Stem-and-Leaf Plot
Frequency Stem & Leaf
7.00 Extremes (=<3.29)
2.00 34 . 55
.00 35 .
.00 36 .
.00 37 .
2.00 38 . 69
8.00 39 . 00255578
4.00 40 . 1146
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3.00 41 . 035
6.00 42 . 011115
2.00 43 . 12
4.00 44 . 3589
2.00 45 . 66
Stem width: .10
Each leaf: 1 case(s)
SFR Stem-and-Leaf Plot
Frequency Stem & Leaf
6.00 5 . 013333
8.00 5 . 56677999
7.00 6 . 0012334
6.00 6 . 666889
6.00 7 . 002223
7.00 7 . 5578899
Stem width: 1.00
Each leaf: 1 case(s)
(b) Construct a relative frequency histogram for CSR and a frequency polygon for SFR on the same
graph with equal class widths, the first class being “$0 to less than $1”. Use two different colours for
CSR and SFR. Graph must be done in EXCEL or similar software. 1 mark
Answer
(c) Draw a bar chart of market capitals (or total assets) in 2017 (in million Australian dollars) of 6
companies listed in ASX that trade in similar products or do similar business as CSR or SFR with at
least AUD100 million in market capital. Graphing must be done in EXCEL or with similar software.
1 mark
Answer
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(d) If one wishes to invest in CSR or SFR, what is the market recommendation (for example, from
Morningstar, Fatprophets, InvestSmart, etc.)? If you cannot find the information, what would be your
recommendation based on your research of these two companies (trend, P/E ratio, dividend yield,
debt and Beta)?
1 mark
Answer
The best information to help decide on either of the two stocks would be obtianing their beta. The beta
will tell how volatile th stock is compared to the market prices. Hence this will help in making the right
decision to either invest or not invest based on how volatile the stock is.
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