The article discusses the computation of Holding Period Returns and CAPM Equation for WBC and CBA Stocks along with the comparison of returns with All Ordinaries Index. It also explains the systematic risk and estimated returns for the portfolio. The article is relevant for students studying finance and accounting.

Assessment item 2

Find the monthly holding period returns for the 2017/18 financial year for Westpac (WBC), Commonwealth (CBA), and the market (MKT) as proxied by the All Ordinaries index. Using Excel, conduct a line graph with all three monthly returns included.

This document contains information on how to calculate holding period returns and the CAPM equation for WBC and CBA stocks.

Holding Period Returns and CAPM Equation for WBC and CBA Stocks

Computation of Holding Period Returns and CAPM Equation for WBC and CBA Stocks

This assignment analyzes two investments, CBA and RIO, comparing their performance and potential returns.  The analysis utilizes the Capital Asset Pricing Model (CAPM) and the Security Market Line (SML) to calculate expected returns and assess risk. The student concludes that investing in CBA is more favorable due to its higher expected return and lower standard deviation compared to RIO.

Computation of Holding Period Returns and CAPM Equation for WBC and CBA Stocks

Investment Analysis: CBA vs RIOlg...

Investment Analysis: CBA vs RIO