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

# Walt Disney Bonds Essay

1314 words - 6 pages

Assignment #1: Virginia Capital Portfolio Optimization

Stock | Mean of Return | Standard Deviation |
IBM | 1.27% | 9.38% |
1) The below table shows the mean of IBM’s Stock to be 1.27% and the standard deviation to be 9.38%.

Stock | Mean | Standard Deviation |
Complete Portfolio of Weighted S&P, Lehman, and MSCI | 0.67% | 2.75% |
2)

The table above shows the mean and standard deviation of a portfolio with S&P 500, Lehman Brothers, and MSCI World Index when they are all equally weighted.

An argument that can be made for the client to sell IBM stock and diversify is about the risk involved. The standard deviation of IBM’s stock is sitting at about 9.34%, which is ...view middle of the document...

This is most likely due to the target standard deviation being lower than any of the standard deviations of the stock.
A few additional assets could be added to reach the targets suggested. For one, you could acquire some T-Bills from the government, which virtually have a standard deviation of zero. This would make it possible to try and achieve a 2% standard deviation for the portfolio. You could also have a larger variety of stock that would reduce the amount of risk due to diversification. The strategy of short-selling would have to commence to reach the target standard deviation of 20%, which the negative weight of 33.22% indicates in the table. Short-selling allows an investor to sell a number of stock that they don’t own in order to invest the money they gain from selling the non-owned stock into something else, like another stock. However, you will need to buy the same amount of stock you sold at some point, making the percentage negative.
Adding a larger variety of risky stock will include a higher rate of return, but with increased risk if you are not effectively diversified. If well diversified your return will be less, but you have less risk. With adding the T-Bills, risk will decrease but so will return. Short-selling could make an increase in return because of the possibility of the stock you sold decreased in value. So when you have to buy the same number of stock back it is cheaper to buy and therefore you gained a profit. However, risk would increase because if the stock you sold while short-selling increases in value, than you may need to pay more when buying the stock back that was borrowed.
If we were not interested in short-selling any stock, then an added constraint should be made. Telling the solver to not allow a negative percentage would eliminate the short-sale. When we do this though, we would not be able to reach the target standard deviation of 20% because no combination of the portfolio standard deviation can go that high.

5)
IBM Return

**Note that the portfolio return for the target standard deviation of 2% was not added because with the available stocks, this was not feasible per Excel solver**
Judging by the above graph, there is a compelling argument to diversify instead of just staying with the IBM stock. There is a large amount of average standard deviation compared to the amount of average return for the IBM stock. In contrast, the average return with the combined portfolio of the three stocks is still risky, but the return is much higher. For example, the return for the combined stock at a standard deviation of 10% is at about 8%, compared to IBM’s...

## Other Papers Like Walt Disney Bonds

### Portfolio Selection Paper

2580 words - 11 pages PAGE Portfolio Selection PAGE 1 Portfolio Selection PaperFIN 402August 14, 2006Portfolio Selection PaperPortfolio selection is a critical step in the investment process when deciding on which securities and stocks to purchase. Team E was asked to select 5 securities and one publicly traded bond in order to comprise an investment portfolio. The five securities that were chosen were Home Depot, Walt Disney, Motorola, Wal-Mart, and Ford. The

### This Paper Is About Why The 1920's Was An Influencial Decade

2447 words - 10 pages @ was entitles The Jazz Singer starring Al Jolson. In 1928, Walt Disney introduced the character Mickey Mouse through the first movie with a talking cartoon character, Steamboat Willie. By the end of the twenties, American families were attending approximately one movie per week (The Americans 628).Similar to movies and the introduction to radio, there were new styles of sound being introduced to the music industry. The first jazz is said to have

### Marketing Management

1993 words - 8 pages seek to obtain a behavioral response from another party. What Is Marketed? Ten types of entities:1.Goods: Physical goods constitute the bulk of production and marketing efforts.2.Servi ces: The U.S. economy today consists of a 70–30 services to goods mix.3.Events: Time-based events such as trade shows, artistic performances, and the Olympics.4.Experiences: By orchestrating several services and goods (Walt Disney World’s Magic Kingdom).5

### The Family Circuit

2823 words - 12 pages century, the American family was relatively untainted by technology. One rotation around Walt Disney World's Carousel of Progress leaves you exiting the park believing technology has been the saving grace of the American Family over the years, and that it holds in store "a great big beautiful tomorrow." That tomorrow is here, and looking among the ruins of what remains of the American family, we see the effects of technology are not what were

### Project Of Hongkong Disney

3190 words - 13 pages 139.44 69.72 2012 290.79 145.40 加：有关迪士尼的现金流 Add: Cash flows relevant to Walt Disney 特许权费 Royalties 食物、商品及其他 food, merchandise & etc (注释 a) 酒店 hotels (注释 b) 门票费 entrance fee (注释 c) 基本管理费 Base management fee (注释 d) 可变管理费 Variable management fee (注释 e) 减：股权投资 Less equity contribution 净现金流量 Net cash flow 净现金流量现值 Discounted net cash flow (2850.00) (2850.00) (2850.00) 10% 225.81 127.47 0.5645 319.47 163.94 0.5132 425.29 198.40 0.4665 544.92 231.10

### Freedom And Responsibility

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

### Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

### Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

### Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

### A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

### The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

## Related Essays

### Disneyland Facts Essay

3930 words - 16 pages reimbursement in shares of convertible bonds granted as part of the 1994 financial restructuring. In 2005, another financial restructuring took place: Walt Disney reduced its equity interest to 39.8% and Saudi Prince Alwaleed's equity interest was down to 10%. 3.7 The opening of Disneyland Paris has set the stage for the development of Disneyland Resort Paris in the surrounding areas of the theme park in subsequent years. In particular, Walt Disney

### Globalization Through The Lens Of The Walt Disney Company

4531 words - 19 pages waste collection, wastewater treatment, pest control, fire protection, and the regulation of building codes and land use within the District. It also gives the District authority to issue bonds to finance these improvements and services.” Through this, Disney World was given the right essentially to function as its own government. “The rights bestowed upon the Walt Disney Company through the Reedy Creek Improvement District include

### The Best Places To Work Essay

4034 words - 17 pages entertainment, on the television and at the theme parks, drives the strategies used in making decisions. With a corporate responsibility directed by the Walt Disney Company line, “we believe that being a good corporate citizen is not just the right thing to do; it also benefits our guests, our employees and our businesses. It makes the company a desirable place to work, reinforces the attractiveness of our brands and products and strengthens our bonds with

### Nnj Srhwl Lksdjlk Essay

1875 words - 8 pages hearing" Ledger-Star, The (Norfolk) 26 May 1994: D-2 Associated Press. "Road widening vital to Disney’s project begins." Virginian-Pilot, The (Norfolk) 7 July 1994: B-5 Bradley, Paul. "Protection trust buys Manassas battle site." Richmond Times Dispatch, The 29 Nov. 2000: B-1 Fehr, Stephen C., and Spencer S. Hsu. "The fly in Walt Disney’s formula; painstaking site selection didn’t anticipate ferocious opposition." Washington Post, The 31 July 1994: B-1 Groer, Anne. "Disney calls on ‘Lion King’ to help sell park." Roanoke Times and World News 12 July 1994: B-7 Knight-Ridder/Tribune. "Historians say Disney