ACFI1003 Introduction to Finance Management


To complete this assessment task you must consider the following:

Your Facilitator will allocate to your group, a pair of companies in the same sector, one is listed on the NYSE and the other is on ASX. Collect monthly prices of stocks of these companies, the Dow Jones Industry Average (DJIA) index value and the ASX100 index value over the period 30 September 2016 to 30 September 2021. Using this data, complete the following tasks:

(a) Calculate the monthly returns, yearly returns, average yearly returns of each of the two stocks, the DJIA index and the ASX100 index over the period in question. (12 marks)

(b) Using monthly return figures, calculate the total risk associated with investing in each of the two stocks and also the total risk if you were invested in assets that track the indices (both DJIA and the ASX100). (6 marks)

(c) Calculate the systematic and unsystematic risks of both stocks. (15 marks)

(d) Based on the risk and return figures determined, which of the two stocks would you invest in? (7 marks)

(e) Evaluate the extent to which artificial intelligence has been applied in asset management and outline some challenges that could be impeding its full scale adoption in this industry. (10 marks)

(f) Critically evaluate the following statement: “Using artificial intelligence techniques is the panacea to all risk management problems in the finance sector”. (10 marks)

Note: For parts (e) and (f) you are expected to use authentic sources of information such as peer reviewed journal articles and industry publications. Do not use Wikipedia, Investopedia or other unacceptable sources from the Internet.

Also note that the total of the questions above is 60%. The remaining 40% would be on how well you introduce the report, the depth of your analysis, the level of critical thinking applied, how well you write and the extent to which you adhere to the APA 7th Edition referencing style. (See the Marking Rubric below for detail)

Consider the following as you work on this assignment:

  • Data sources are from Yahoo Finance ( for Australian companies and for USA companies
  • You are expected to do calculations on an Excel Spreadsheet but the Assessment will be presented in a report format in a Word document. (See instructions below of how to embed an EXCEL file into a WORD document)
  • Inside the report, remember to cite the sources of information used. Put the list of references at the bottom of the report
  • You will be assessed on how well you address the key questions in the assesments and how well you write the report.

Allocated companies

1 . Coca cola co

2.  Coles limited

Read less

Leave a Reply

Your email address will not be published. Required fields are marked *