write a report on the risk and return of the following stocks listed in Australian Stock exchange

You are an equity analyst in an investment bank. You need to write a report on the risk and return of the following stocks listed in Australian Stock Exchange:

 Commonwealth Bank of Australia (CBA.AX)

 Rio Tinto Ltd (RIO.AX)

 Woolworths Ltd (WOW.AX)

Analysis period

January 1, 2012–December 30, 2016

Required:

Write a report on the risk and return of the above stocks with the following parts:

(a) Analysis of asset returns: 30 marks

The analysis of asset returns includes the discussion on average return, maximum and minimum return and distribution of returns.

(b) Portfolio Return and Risk: 30 marks

You need a create a three-asset portfolio having the equal weighting for each stock above. After creating the portfolio, you need to analyse portfolio return and risk.

(c) Risk Measure (Sharpe Ratio): 10 marks

You need to calculate the Sharpe Ratio of each stock return, assuming the risk free return during the analysis period is 3% and choose the best stock on the basis of Sharpe Ratio.

(d) Value at Risk (VaR): 30 marks

You need to calculate the Value at Risk using a normal distribution at 95% confidence level for each stock listed above and choose the best stock on the basis of VaR.

Maximum word length: 1,500 ± 10% words, excluding graphs, tables and references.

Include a few graphs and tables were appropriate.

Havard style referencing.