Investment Management: Calculating Returns Using Single Index Model

This document presents a comprehensive solution to an investment management assignment. The core of the assignment revolves around calculating the rate of return for various stocks (BHP, CBA, TLS, WOW) using the Single Index Model. The solution includes detailed calculations of percentage daily changes, closing prices, and the application of the Single Index Model to determine the required rate of return. The assignment covers a time period from August 2012 to July 2017. The solution provides a month-by-month breakdown of the calculations and analysis, including the expected stock return and beta values for each stock. The assignment also incorporates data from the ASX200 index to provide context for market performance. The provided information will help students to understand and evaluate investment strategies and portfolio performance.