Q4a. Compute the expected returns for ANZ and COH using the CAPM, i.e. E (RANZ) = Ryf + BANZ (E(Rm) - Rrf) E (RCOH) = Rrf + Bcon (E(Rm) - Rrf)

Where: • Ryf is the average of the monthly risk-free rate • E(Rm) is the average of the market return Note: provide final answer in 4 decimal places (1 mark) Q4b. Consider the dividend worksheet. Assume you buy one share of ANZ and one shares of COH on 01/12/2019 and you decide to hold the shares in the first two years of COVID-19 crises then sell the two shares on 1/12/2021. Calculate your holding period return for the two shares. State the formula you use in your calculation. Comment and compare your results with part 4a above and state which share is over-valued and under-valued. (3 marks)