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

Investment Finance-II - identification ExampleAnswer 1 HPR, AAR and GARThe company selected for Part - A is AMP Ltd. It is a monetary services company headquartered in Sydney, Australia. a) The monthly HPR (Holding Period Returns) can be metrical using the quest formulaHPR = (end period value initial value)/initial valueThe data for HPR is the adjusted destination damage of AMP Ltd starting from July 2013 to June 2015. The results of the calculation ar summarized graphically underVariance, standard deviation, maximum and hourimum is calculated using the following formulas,Standard deviation = in leap out, 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 average 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 g iven problem the 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 gain will be $ 23,598 as shown below