Statistics - Assessment Questions

Question:1

1. Data has been taken from investing.com. we use ten years of quarterly data of both Westpac banking corporation and national Australia bank.
2. bellow is the 6 companies from the energy sector listed on ASX with a market capitalization of at least AUS 100 million in market capitalization.
3. the PE ratio of NAB is 15.41 means for every dollar of earning investors have to pay 15.41 dollars. The 5 monthly beta of NAB is 0.93, which means that low market risk is as compared to the market index. But the total debt of the bank is much greater than the equity such as total debt in 2021 is 169,840,000 and the total common equity is 62,779,000, which shows a higher risk to the equity investors. On the other hand, a beta of WBK is 0.84 which is lower than the beta of NAB, the PE ratio of WBK is 15.15 which is also lower than the PE ratio of NAB. The total debt of WBK is 90,573,000, and the common equity is 72,035,000, so the debt-to-equity ratio of WBK is much lower than the debt-to-equity ratio of NAB. So, we will recommend buying the stock of WBK and selling the stock of NAB.

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