Quantity And Portfolio Returns From Benchmark Index

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Part B: Both excess and portfolio returns were calculated in the previous section. Subtraction of the portfolio returns from the ASX 200 benchmark returns yields the tracking error figures. Correlation figure for portfolio against ASX 200 benchmark was 0.4568 or 45.68%. The correlation coefficient interval is limited to integer values of both negative and positive one. Assets can be perfectly correlated at both extremes, (Brailsford, Heaney & Bilson, 2011, p. 25). All four asset class correlation figures (A-REITS, infrastructure funds, domestic and international ETFs) measured against ASX 200 benchmark will be looked at in detail. Three of the four asset classes measured against the ASX 200 benchmark had positive correlations. Domestic…show more content…
Here, the correlation figure amounted to -0.2090 or -20.90%. Factors highlighting negative returns include an appreciation of the Australian dollar, heavy losses sustained due to the Global Financial Crisis between 2008 and 2009 and stagnated growth throughout the previous decade of -2.1%, (Brailsford, Heaney & Bilson, 2011, p. 87). The loss of investment returns can be minimised by undertaking due diligence and research into asset categories on the investors’ behalf, (Brailsford, Heaney & Bilson, 2011, p. 26). Part C: PART TWO: The Indonesian Stock Exchange oversees the Indonesian Stock Market. Establishment occurred in 1912 for trading with Dutch East Indies business entities. Macro-economic factors involving the transition of government power from The Netherlands to Indonesia affected advancement of the Indonesian stock market, (Sustainable Stock Exchanges Initiative, 2013). Progression stagnated due to the absence of equity financing, minimal income growth and overexertion of financial institutions throughout the nation. The stock exchange re-established in 1977 as the Jakarta Stock Exchange comprising of 24 companies. Stock exchange listings declined due to the dominance of financial institutions and profitability shortages. Listings occurred with the assistance of forced government intervention, (Kung, Caverhill & McLeod, 2010, p. 330). Deregulation and privatisation of capital markets by the Indonesian
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