HI5002 Finance for Business T3 2023 Assignment Help

05 Jan 2024

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HI5002 Finance for Business T3 2023 Assignment

Group Assessment - Cover Page

Unit Details	Name	Finance for Business
	Code	HI5002
	Year, Trimester	2023, Trimester 3

Assessment

Details

Name

Group Assignment

Due Date and Week

Week 10

Group Student Details	Student ID	First Name	Family Name	Work Contribution

Group Submission Declaration	Integrity Declaration	Student ID	Full Name	Submission Date
	We have read and understand academic integrity policies and practices, and our assessment does not violate these.

Instructions

Academic Integrity Information

Holmes Institute is committed to ensuring and upholding academic integrity. All assessments must comply with academic integrity guidelines. Important academic integrity breaches include plagiarism, collusion, copying, impersonation, contract cheating, data fabrication and falsification. Please learn about academic integrity and consult your teachers with any questions. Violating academic integrity is serious and punishable by penalties that range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Format

Instructions

· Most assessments must be in MS Word format with no spacing, 11-pt Calibri font and at least 2cm margins on all four sides with appropriate section

headings and page numbers.

· You must name your file with the Unit Code and Group Number (e.g. "HI5002 Group 4").

· Check that you submit the correct document, as special consideration is not granted if you make a mistake.

· Student IDs need to be indicated on the cover page. Non-contributing students

do not receive marks.

Penalties

· All work must be submitted on Blackboard by the due date and time, along with a completed Assessment Cover Page. Late penalties apply.

· Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Holmes Institute Adapted Harvard Referencing. Penalties are associated with incorrect citation and

referencing.

Assessment Details and Submission Guidelines


Assessment Title	Risk Return and Portfolio Evaluation.
Purpose of the assessment (with ULO Mapping)	Students are enrolled in a Group of up to 4 members. The group will study, analyse and conduct academic work on the topics of Business finance from week 1 to week 9 (ULO 1, 2, 3 and 4). A group of 4 students will study, analyse, and perform academic assignments related to business finance. This activity will cover ULO 1, 2, 3, and 4.
Weight	40 % of the total assessments
Total Marks	40
Word limit	3,000 words ± 500
Submission Guidelines	· All work must be submitted on Blackboard by the due date, along with the completed assignment cover page. The template of the assignment cover page is provided in the assessment folder. · The assignment must be in MS Word format, with no spacing, 11-pt Calibri font and 2 cm margins on all four sides with appropriate section headings and page numbers. Excel files, PDF files and other Black Board unsupported files are given zero marks (This is with reference to the report of the assignment). · However, the assignment should be supported with the relevant data sets, calculations and charts in excel. · Reference sources must be cited in the text of the report and listed appropriately at the end in a numbered reference list using the Adapted Harvard Referencing style. A penalty is applied for incorrect referencing. · Submitted work should be your original work, showing your genuine engagement in this unit. Evidence of your original group work (allocation of tasks, discussion, file exchanges, drafts, etc.) needs to be presented. · Students need to read and understand the Holmes Academic Conduct and Integrity Policy before they start any assessment to ensure that their assignment is misconduct-free. · Three (3) attempts of submission are allowed, and only the final submission will be graded. · When you submit your assignment electronically, please save the file as 'Group Assignment- your Group number.doc'. You are required to submit the assignment at Blackboard/Assessments/Group Assignment Information/Group Assignment and Submission Link. · Always keep an electronic copy of your original file until you have received the final grade for the unit. Please ensure that you submit the correct file in the correct format that is readable on Blackboard.

Group Contribution

Every member in each group must contribute equally to the group work. Any members who do not respond or contribute to the group work should be reported by the group to the Unit Coordinator for removal before week 10.

To ensure fair distribution of work, each group must agree on the percentage of contribution and tasks for each member, including specific parts of the assignment for which each member will be responsible. This information must be clearly specified in the table on the cover page, and you must retain evidence to substantiate your contribution.

Assignment Specifications

Risk Return and Portfolio Evaluation (40 marks)

Instructions:

You are required to gather the monthly share prices (Adjusted Close) for January 2020 (01/01/2020) through Oct 2023 (31/10/2023) for your group's assigned ASX companies from Yahoo Finance.

· Allocation of companies

Group Number

Companies for Study (from ASX)

1-8

ASX: WDS Woodside Energy Group Ltd ASX: CSL CSL Limited

ASX: WTC WiseTech Global Limited

ASX: TCL Transurban Group

9 -16

ASX: STO Santos Limited

ASX: COH Cochlear Limited

ASX: XRO Xero Limited

ASX: BXB Brambles Limited

17 - 24

ASX: ALD Ampol Limited

ASX: SHL Sonic Healthcare Limited ASX: NXT NEXTDC Limited

ASX: CPU Computershare Limited

25 onwards

ASX: YAL Yancoal Australia Ltd

ASX: RMD ResMed Inc

ASX: ALU Altium Limited

ASX: REH Reece Limited

Note:

· Group enrollment is specific to each campus, and you are not allowed to create groups that span across different campuses.

· You are required to strictly adhere to the company selection guidelines. Failure to comply will result in no grades being awarded for the group assignment.

Questions

I. Write a brief overview of four companies, including the following details

a) Industry classification

b) Main business operation and products,

c) target market and competitors (5 marks)

II. Calculate the monthly return and fill the table below. If there are no return values, indicate them as N.A. (3 marks)

Note: You are required to copy this table to your

assessment answers document.

	Return %
Month	Company 1 (Name)	Company 2 (Name)	Company 3 (Name)	Company 4 (Name)
Jan-20
Feb-20
Mar-20
Jan-21
Feb-21
Mar-21
Jan-23
Feb-23
Mar-23
Aug-23
Sep-23
Oct-23

Please note that the table above shows several return calculations from your dataset. However, the answers to all the questions should be based on the entire dataset.

III. Derive suitable graphs to show the volatility of monthly returns, comment on significant observations and critically review the possible reasons behind the return volatility.

Please insert the graph into the assignment

(4 marks)

IV. Calculate the arithmetic mean, variance and standard deviation of monthly return and comment on the risk and return behaviour of the stocks. (6 marks)

	Company 1 (Name)	Company 2 (Name)	Company 3 (Name)	Company 4 (Name)
Arithmetic Mean (%)
Variance (%)
Standard Deviation (%)

Note: Round off all values to two decimal places

V. Calculate the geometric mean of the monthly return for each stock, and explain what these values indicate about the companies' returns (3 marks)

Company 1 (Name)

Company 2 (Name)

Company 3 (Name)

Company 4 (Name)

Geometric Mean

(%)

VI. Using the calculated average monthly return, estimate the annual return. (3 marks)

Company 1 (Name)

Company 2 (Name)

Company 3 (Name)

Company 4 (Name)

Annual Return

(%)

VII. Calculate the holding period return for each stock. (3 marks)

Company 1 (Name)

Company 2 (Name)

Company 3 (Name)

Company 4 (Name)

Holding Period

Return (%)

VIII. Assume that on January 1, 2020, you invested $15,000 in the stock with the highest return out of the four given stocks. Calculate the value of your investment at the end of Oct 2023.

(3 marks)

IX. Based on the monthly return, estimate these stocks' correlations and critically review your findings.

Please insert the correlation matrix from your

Excel output

(5 marks)

X. Assume an investor seeks your help to construct a portfolio consisting of two stocks from those you reviewed. Advise him on the correct selection of stocks, based on correlation analysis, and then review the portfolio's risk and return.

Support your answer with a suitable table with the

required calculations

(5 marks)

Note:

a) Do not copy the questions into your assignment document; use the question number instead.

b) Ensure that you attach the Excel file to your assignment submission, as assignments submitted without an attached Excel file will incur a 10% penalty.

Marking criteria

Marking criteria	Weighting
Risk Return and Portfolio Evaluation
Overview of companies	5
Calculation of monthly return	3
Review of the volatility of return	4
Calculation of arithmetic mean and standard deviation and geometric mean of monthly return	9
Estimation of annual return and holding period return	6
Estimation of the value of the investment of $15,000	3
Correlation analysis	5
Portfolio evaluation	5
Total	40

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes' graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from

deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six categories of Academic Integrity breaches

Plagiarism	Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self- plagiarism.
Collusion	Working with one or more other individuals to complete an assignment, in a way that is not authorised.
Copying	Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
Impersonation	Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheating	Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsification	Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.