Calculating the Beta of A Security

Question:

Part A: Calculating the beta of a security

Calculate beta of an ASX company using 5 years quarterly returns of the selected stock, the stock market (all ordinary index) and 10-year bonds. You are required to use Excel program to complete this project. You must use formulae in excel and must print out the formulae that has been used in completing this part.]

Instructions

You need to answer and calculate the following for this part of the assignment:

  1. Provide a summary of the selected ASX company.
  1. Calculate the data of quarterly stock returnsof the selected company over past 5 years (i.e., 2016 to 2020).
  1. Calculate the data of quarterly market returns(all ordinary Index) of the selected company over past 5 years (i.e., 2016 to 2020).
  1. Calculate the data of quarterly 10-year government bond returns(yield) of over past 5 years (i.e., 2016 to 2020).
  1. Identify the Ex-dividend dates for selected company over last five years (i.e., 2016 to 2020) and the respective dividend paid per share. Then calculate Beta for the selected company.

Part B:

Involves writing an essay on two concepts: Agency Conflicts and Corporate Governance Plus capital structure theory (1500 words). [Essay must be submitted in Turnitin folder]

“In a large company, ownership is often spread over a large number of shareholders who may effectively have little control over management. Management may therefore make decisions that benefit its own interests rather than those of the shareholders.” (Parrino et el 2016). This separation of ownership and control creates conflicts. These conflicts may also result in corporate misconduct and concerns over corporate governance practices of corporations.

Based on the above, write a brief essay on the topics of agency conflicts that are a result of the separation of ownership and control, and the role of corporate governance in modern corporations. Your essay must incorporate academic and professional research to support for your argument

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