Business Finance Assignment: Analysis of Risk, Return, and Correlation

This business finance assignment analyzes the risk and return of the Australian stock market from January 2013 to May 2019, using the All Ordinaries Index as a benchmark. It computes and comments on the monthly and yearly holding period returns of RIO, ANZ, WES, and TLS stocks. The assignment calculates monthly return correlation coefficients between each pair of stocks and between each stock and the market index, identifying the highest and lowest correlations. It explores economic reasons behind these correlations and suggests portfolio construction based on the analysis. The expected returns for different companies were calculated and the student has provided a detailed analysis of the stock market data.