This website uses cookies to ensure you have the best experience. Learn more

Fi 4000 Case Report

546 words - 3 pages

Finance 4000 |
Project One |

1a) This report was created to analyze and evaluate historical daily data of four companies. These daily data was obtained from yahoo finance website. The provided data includes daily adjusted closing prices of four companies: Apple, Wal-Mart, Microsoft and GE. From given data I calculated the average daily returns and standard deviations for each company, which is represented below:

1b) By using daily returns for entire period I prepared correlation matrix for firms. A correlation coefficient tells us what percentage of two assets’ price movements are driven by the same market forces. Below is correlation matrix of four companies:

1c) I analyzed the data above to find the highest and lowest correlations among all firms. My results showed that Wal-Mart has highest (0 .291) ...view middle of the document...

The lower the correlation between two stocks the greater the diversification benefit, the lower the risk of portfolio that combines them. When two stocks move more oppositely, their returns will tend to offset one another in most states, causing a return of a portfolio combining them to be less volatile.

2a)I collected 10 years of historical monthly data of Amazon and Yahoo stocks. From these adjusted closing prices, I calculated monthly returns and standard deviation of monthly returns for each stock. After I got my monthly returns and standard deviation I converted them to annual values by using formulas. Formulas that were given are below:
Annualized Mean Return= (1+Monthly Mean Return) ^12-1
Annualized Standard Deviation= Monthly Standard Deviation *square root of (12)
Calculation results are presented below:

2b)By using my annual returns and standard deviations I calculated correlation coefficient of the returns of two stocks. Deriving from my calculation these two stocks have low correlation of 0.1762. Since they have low correlation return, I combined these two stocks using every possible weighting between the two stocks in discrete of 1% increments to calculate their expected return and volatility. After I got my results for expected returns and standard deviation of the portfolio, I calculated their Sharpe Ratio using risk free rate of 2%. Table below shows, the correlation between two stocks, and the highest Sharpe ratio:

2c) Amazon has expected return of 34.91% and standard deviation of 40.58%, on other hand Yahoo has 6.69% in expected return and standard deviation of 34.15%. I created optimal risky portfolio using this two stocks and graphed the IOS. Since correlation between two stocks is 0.1762, our graph will look like a c shape. The IOS is graphed below:

Covariance | Variance | Beta |
0.001781385 | 0.001436233 | 1.24031754 |
  | Coefficients |
Intercept | 0.000624029 |
X Variable 1 | 1.24031754 |

Other Papers Like Fi 4000 Case Report

Ethical Thinking Essay

1571 words - 7 pages conducted in Boca Raton, Florida found that many residents were surprised of the security risks of their unsecured home Wi-Fi networks. (Lachowski, Alberti, & Hofmann) [ 8 ]. A heavily redacted version of the FCC report was first released at the request of Google to protect itself against "substantive competitive harm". It was only when Electronic Privacy Information Centre (EPIC) filed a Freedom of Information Act request with the FCC that Google was forced to release the unredacted report.

Jbhifi Evaluation Essay

3511 words - 15 pages 25743 Corporate Financial Analysis – Assignment 1 Recommendation Report: JB Hi-FI (JBH.AX) – Consumer Discretionary Name | Student ID | Lecturer Name | Lecture Time | Question | Nathan (Fortunato) Foti | 11049614 | Lorenzo Casavecchia | 6PM | 1 | Agnes Ho | 10427514 | Lorenzo Casavecchia | 6PM | 2 | Carrie (Shuhan) Chen | 11624261 | Lorenzo Casavecchia | 6PM | 3 | Nhan Doan Chi | 11814668 | Lorenzo Casavecchia | 12PM | 4 | Han

Project Management Example

1853 words - 8 pages * Unlimited data * 24/7 service availability * Regular maintenance provided * Quality price with high quality service * Enables multiple devices | Wi-Fi Connection | | IPad Stands | * Mountable on coffee tables * Secures iPad against robbery attempt * Height adjustable * warranty | New Monitor | * warranty | IPad Protective Case | * Withstand shocks/falls * Protects iPad screens against dusts and scratches

Atlantic Computers Pricing Option

855 words - 4 pages server TRONN with a software tool PESA which will grow up the efficiency of server approximately four times. First of all, apart from choosing the suitable pricing method for Atlantic computers, the broad of this company also need to consider about the lifecycle of their product. Basing on the case of IBM HTTP Server or The server products of Microsoft, it seems that the lifecycle of high tech products is decreasing rapidly nowadays. According to

Caracterizarea Merceologica a Bicicle

5890 words - 24 pages I. Istoricul bicicletei O bicicletă poate fi definită în general ca fiind un vehicul rutier cu două roți așezate în linie una în spatele celeilalte, pus în mișcare prin intermediul a două pedale acționate cu picioarele. Se estimează că mersul pe bicicletă este de trei ori mai eficient din punct de vedere energetic decât mersul pe jos, iar viteza este de trei - patru ori mai mare. Fiind inventate în Europa secolului 19

Project Plan

5265 words - 22 pages experts in case project suffers due to inexperienced staff. 01/12/2011 25% L L L 4000 1000 2 months Risk Description Losing critical staff at crucial point of the project Risk Owner Human Resource Response Plan Mitigation Allocate sufficient funds to hire external experts in case project suffers due to losing key staff. #9 01/12/2011 25% L L L 4000 1000 2 months Risk Description Inconsistent cost, time, scope and quality

Bism Report

1938 words - 8 pages BISM REPORT Having been employed as consultant by a Building Architect firm, I was requested to do a research to decide which mobile device would be most appropriate for the company to adopt and justify why the company should upgrade their information system infrastructure. I was also requested to look into management issues which the directors should consider. First important issue was to understand the needs of a building architect

Business Game

1822 words - 8 pages Transmission | Sensors/Park Assist | Sports Suspension | Rain Sensor/Auto Lights | Controlled Air Condition | Sports Suspension | Hi-fi system/MP3 | Controlled Air Condition | Luxury Styling Pack | Hi-fi System/MP3 | | Tyre Pressure Monitoring | | Luxury Styling Pack | | R&D We chose Facelift and Ultra Low Emissions for R&D. Facelift was selected in case we fail to sell the desired amount of cars in our first year. Facelifts will

Openradio and Software Defined Cellular Wireless Networking

1645 words - 7 pages actually implemented on hardware. At the time of this report, no additional information is available regarding the developmental status of OpenRadio’s NOS, but the programmable basestations for Wi-Fi are available for approximately $3000, with LTE basestations expected to have a similar price once completed. It is anticipated that the OpenRadio NOS will be similar to, if not based in part on, NOX, an operating system for wired networks developed

Ethical Behavior on Managers

4286 words - 18 pages . • Preparation of meter change report of newly installed smart meters for billing purpose. Phase II: Meter Data Management System Deployment • The core activity in this phase is deployment of Meter Data Management System infrastructure and development of related software application packages. • Advanced telecommunication devices and infrastructure will be deployed to support advanced smart grid and customer applications. • Putting in place tamper flag

Kindlefire Marketing

3629 words - 15 pages Kindles 10%. Amazon is currently applying the printer toner business model to increase the Kindle Fire sales. The latest total sales revenue is at $90.26 billion. Projected sales revenue for 2015 is $107.5 billion, which shows a significant increase in sales, as it gets closer to its competitors. Some recommendations I have for the Kindle Fire is to have wireless companies sell their tablets. Right now the Kindle Fire is mainly only found with Wi-Fi

Related Essays

Economic Analysis Of Gogo’s In Flight Wi Fi

3443 words - 14 pages Case Study: Economic Analysis of Gogo’s In-flight Wi-Fi November 2, 2015 Introduction Gogo pioneered and now dominates the in-flight Wi-Fi business, which allows passengers to access the Internet during their flights. In recent years, consumers have grown from anticipation to dislike towards Gogo’s services due to its steady increase in fees and rapid decrease in speed. Through a dynamic pricing strategy they hope to relieve congestion

Nokia Alvarion Essay

4007 words - 17 pages Nokia-Siemens Networks Acquires Alvarion Table of Contents 1) Nokia Siemens Networks – Background 3 2) Alvarion – Background 4 3) Data Explosion, Mobile Offload & Carrier-Grade Wi-Fi 6 4) Motivation for Acquisition 8 5) Alvarion evaluation 10 a) Alvarion stand-alone valuation 10 b) Alvarion-NSN Synergy valuation 11 c) Pricings: 13 6) Probability for success - Bidding side 14 7) Probability for success

Wireless Networking Essay

2674 words - 11 pages April - Central. New Straits Times. Retrieved from Winslow, R. (2012, Apr 16). Innovations in health care (A special report) --- the wireless revolution hits medicine: Eric Topol talks about the upheaval that's coming as the digitization of health care meets the smartphone. Wall Street Journal. Retrieved from

National Cranberry Cooperative Analysis

637 words - 3 pages Case Analysis of National Cranberry Cooperative Team1. Report I. Summary <Process Flow Chart> <Operations> 1) Receiving and Testing ☞ RECEIVING * 243 trucks deliver 75 barrels(=7500 pounds) per truck on average * 75*243 = 18225 barrels (1822500 pounds) * Last truck arrived (1140min) – First truck arrived (411min) = 729min (=1140 - 411) → 729min/60 = 12.15hrs (Total receiving time) ∴ For 12.15hours, 243