Investment Finance-II Assignment Example | Topics and Well Written Essays - 2750 words

Investment Finance-II - Assignment ExampleAnswer 1 HPR, AAR and GARThe company selected for Part - A is AMP Ltd. It is a financial run company headquartered in Sydney, Australia. a) The monthly HPR (Holding Period Returns) can be calculated utilise the following formulaHPR = (end period mensurate initial value)/initial valueThe data for HPR is the adjusted close price of AMP Ltd starting from July 2013 to June 2015. The results of the calculation are summarized graphically belowVariance, standard deviation, maximum and minimum is calculated using the following formulas,Standard deviation = in excel, SD = stdev (array of numbers) Variance = (SD)2Maximum = max (array of numbers)Minimum = min (array of numbers)The results of calculation is summarized and shown below-The arithmetic come and geometric average of returns are calculated in excel using the functions AVERAGE (array of numbers) and GEOMEAN(array of numbers) and the results are shown belowd) Based on the given problem th e number of shares bought are 11,055 as shown belowThe number of shares is calculated by diving available funds with adjusted close priceBased on the given assumptions the total strive will be $ 23,598 as shown below