• Assume you have AUD1, 000, 000. Create an equally weighted portfolio of your two stocks as at 31 October 2022. Show all calculations and workings. On 30 January 2023, you

receive news that highlights instability in the global banking sector and believe there is significant downside risk which may impact your Australian banking stock(s). However, in this environment you believe there will be a flight to safe assets such as gold, and are therefore bullish on your gold stock(s). Devise a strategy that has the following objectives listed below and provide a detailed description of all your transactions and consider all costs. i. Protect the portfolio from adverse movements in the banking stock(s), by using an appropriate options strategy (where the option is held to maturity) from 30/01/2023 (start date) to 18/05/2023 (close out date); and ii. Protect the portfolio from a market downturn whilst maintaining the full exposure to the unsystematic risk in your gold stock(s) from 30/01/2023 (start date) to 18/05/2023 (close out date) (hint: consider the use of a futures contract). At the end of the period, close all the positions and evaluate the effectiveness of your strategy. Consider your total portfolio returns from inception (31 October 2022) without the hedging strategies versus the total portfolio returns with the hedging strategies and assess these returns against a relevant benchmark. Was it superior or ineffective? What are the potential sources of ineffectiveness in your strategy that may contribute to it performing better/worse than expected? Need to use EXCEL in this assignment, Data file is attached Assignment details | Need to use Excel, data file is attached