This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/business-case-development-framework-199
The Business Case is an instrumental tool in both justifying a project (requiring a capital budgeting decision), as well as measuring the project's success. The Business Case model typically takes the form of an Excel spreadsheet and quantifies the financial components of the project, projecting key metrics for making any important business decision: Net Present Value (NPV), Return on Investment (ROI), Payback Period, Cost of Investment.
If a project has been justified by the Business Case (both financially and non-financially) and receives the go-ahead from executives, the Business Case model is then continuously maintained and adjusted to track the project?s progress against the initial financial projections and assumptions. This model then becomes a working document used during the project management process.
This toolkit will detail the process of creating a robust Business Case. It also includes a working sample Business Case model (in Microsoft Excel).
This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/business-case-development-framework-199
The Business Case is an instrumental tool in both justifying a project (requiring a capital budgeting decision), as well as measuring the project's success. The Business Case model typically takes the form of an Excel spreadsheet and quantifies the financial components of the project, projecting key metrics for making any important business decision: Net Present Value (NPV), Return on Investment (ROI), Payback Period, Cost of Investment.
If a project has been justified by the Business Case (both financially and non-financially) and receives the go-ahead from executives, the Business Case model is then continuously maintained and adjusted to track the project?s progress against the initial financial projections and assumptions. This model then becomes a working document used during the project management process.
This toolkit will detail the process of creating a robust Business Case. It also includes a working sample Business Case model (in Microsoft Excel).
Whether you're managing your own business or working for a Fortune 500 company, Business Strategy is integral to your company's success. More Info At : http://learnppt.com/powerpoint/58_Business-Case-Development-Toolkit-with-Excel-model.php
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
In Relative Valuation, Companies are valued on the basis of how similar or comparable companies and assets are priced in the market place. You employ a series of financial ratios in order to figure out the value. The most popular ratio used in called as the Price Earning Ratio
A Pre-feasibility Study is conducted to obtain an overview of the problem and to roughly assess whether feasible solutions exists prior to committing substantial resources to a project, or even before spending a lot of money for the feasibility Study itself.
Company Valuation PowerPoint Presentation Slides SlideTeam
Get ready-made Company Valuation PowerPoint Presentation Slides to analyse all the profit and net value your business has made. Conduct a thorough evaluation of a company’s management, capital structure, future earning prospects, and more with the help of professionally designed company valuation PPT presentation templates. Determine the current worth of a business and assess all aspects of a business. This deck comprises of several company valuation PowerPoint templates like valuation methodology, valuation steps, company valuation methodologies, determining free cash flow, valuation results, business due-diligence process, strategic due-diligence methodology, and more. Incorporate business valuation PowerPoint slideshow to estimate the selling price of the business. Use business valuation methods PowerPoint techniques for valuing a business asset such as cost approach, cost to build, replacement cost, market approach, discounted cash flow, forecast future cash flow, etc. Grab access to the company valuation complete PowerPoint deck for a business analysis. Employ a few jocular expressions with our Company Valuation Powerpoint Presentation Slides. It helps insert a bit of humor.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Seeking challenging opportunity to work as an Analyst who will be able to benefit the organization with the appropriate analytical research, technical and problem-solving skills.
Expertise in Equity Research, Commodity Research & Fund Management. Have generated Short Term Trading and Long Term Investment calls/recommendations with a strike rate of 80-85%. Believe in using a combination of Technical, Derivative and Fundamental analysis in order to successfully trade and invest in financial markets.
I have completed a course in Financial Modelling in order to work together on technical and fundamental analysis to increase the accuracy. Extremely motivated to constantly develop in performance and contributes towards the organization’s growth.
An evaluation and analysis of the potential of the proposed project that is based on extensive investigations and research to give full comfort making decisions based on the study
by: lecturer Abd ElRahman J. AlFar
Al-Azhar University of Gaza
Plagiarism report needs to be submitted along with the answers Pdannies7qbuggie
Plagiarism report needs to be submitted along with the answers
Please open the attachment to see the full assignment
Case 6 Report Instructions
CASE 6: The Financial Detective, 2016
Case Introduction/Overview
This case presents the student with financial ratios for eight pairs of unidentified companies and asks them to mate the description of the company with the financial profile derived from the ratios. The primary objective of this case is to introduce students to financial ratio analysis—in particular, the range of ratios and the insights each one affords. This case presumes that students have already been introduced to the definitions of various financial ratios through other readings or lectures. Search the web if you need a refresher on ratios (there are many articles and tutorials on this topic).
The structured exploration of pairs of companies within an industry affords a number of important insights into strategy and financial performance. First, the economics of individual industries account for significant variations in financial ratios because of differences in technologies, product characteristics, or competitive structures. Second, financial performance results from managerial choices: within industries, the wide variation in financial ratios is often a result of the differences in corporate strategy in marketing, operations, and finance. For those reasons, this case is a good springboard into subsequent classes, which deal with the interaction of strategy and financial performance.
Case Report Instructions
The report for this case is a bit different from other assignments in the course. For this report, copy and paste the tables that begin on the next page into a Word file (or delete this page and replace with a cover page). For each industry, indicate by typing your letter choice in the second column which data column you think goes with each company description (note that the descriptions have been truncated; see the case for a full company description). For example, in the first table titled “
Airline
”, indicate in the “Associated Correct Data Column” box whether “A major airline that flies domestically and internationally …” is data column A or B in Exhibit 6.1. You can type the letter (A or B) in the column box (it should be centered, but if not, please center your answer choice).
Then, you must provide at
LEAST
(more preferred for an excellent report) three (3) reasons for your choices. Type these in the space provided (reasons should be several sentences and they must directly relate to the data in Exhibit 6.1. For example, if you think that an airline that operates both domestically and internationally … would have more Cash and ST Investments than an airline that operates primarily in the United States …, write this as a reason and clearly explain why you believe this to be a reason. Your reasons for your choices are as important (perhaps more so) than whether or not your choices are correct.
A ...
Whether you're managing your own business or working for a Fortune 500 company, Business Strategy is integral to your company's success. More Info At : http://learnppt.com/powerpoint/58_Business-Case-Development-Toolkit-with-Excel-model.php
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
In Relative Valuation, Companies are valued on the basis of how similar or comparable companies and assets are priced in the market place. You employ a series of financial ratios in order to figure out the value. The most popular ratio used in called as the Price Earning Ratio
A Pre-feasibility Study is conducted to obtain an overview of the problem and to roughly assess whether feasible solutions exists prior to committing substantial resources to a project, or even before spending a lot of money for the feasibility Study itself.
Company Valuation PowerPoint Presentation Slides SlideTeam
Get ready-made Company Valuation PowerPoint Presentation Slides to analyse all the profit and net value your business has made. Conduct a thorough evaluation of a company’s management, capital structure, future earning prospects, and more with the help of professionally designed company valuation PPT presentation templates. Determine the current worth of a business and assess all aspects of a business. This deck comprises of several company valuation PowerPoint templates like valuation methodology, valuation steps, company valuation methodologies, determining free cash flow, valuation results, business due-diligence process, strategic due-diligence methodology, and more. Incorporate business valuation PowerPoint slideshow to estimate the selling price of the business. Use business valuation methods PowerPoint techniques for valuing a business asset such as cost approach, cost to build, replacement cost, market approach, discounted cash flow, forecast future cash flow, etc. Grab access to the company valuation complete PowerPoint deck for a business analysis. Employ a few jocular expressions with our Company Valuation Powerpoint Presentation Slides. It helps insert a bit of humor.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Seeking challenging opportunity to work as an Analyst who will be able to benefit the organization with the appropriate analytical research, technical and problem-solving skills.
Expertise in Equity Research, Commodity Research & Fund Management. Have generated Short Term Trading and Long Term Investment calls/recommendations with a strike rate of 80-85%. Believe in using a combination of Technical, Derivative and Fundamental analysis in order to successfully trade and invest in financial markets.
I have completed a course in Financial Modelling in order to work together on technical and fundamental analysis to increase the accuracy. Extremely motivated to constantly develop in performance and contributes towards the organization’s growth.
An evaluation and analysis of the potential of the proposed project that is based on extensive investigations and research to give full comfort making decisions based on the study
by: lecturer Abd ElRahman J. AlFar
Al-Azhar University of Gaza
Plagiarism report needs to be submitted along with the answers Pdannies7qbuggie
Plagiarism report needs to be submitted along with the answers
Please open the attachment to see the full assignment
Case 6 Report Instructions
CASE 6: The Financial Detective, 2016
Case Introduction/Overview
This case presents the student with financial ratios for eight pairs of unidentified companies and asks them to mate the description of the company with the financial profile derived from the ratios. The primary objective of this case is to introduce students to financial ratio analysis—in particular, the range of ratios and the insights each one affords. This case presumes that students have already been introduced to the definitions of various financial ratios through other readings or lectures. Search the web if you need a refresher on ratios (there are many articles and tutorials on this topic).
The structured exploration of pairs of companies within an industry affords a number of important insights into strategy and financial performance. First, the economics of individual industries account for significant variations in financial ratios because of differences in technologies, product characteristics, or competitive structures. Second, financial performance results from managerial choices: within industries, the wide variation in financial ratios is often a result of the differences in corporate strategy in marketing, operations, and finance. For those reasons, this case is a good springboard into subsequent classes, which deal with the interaction of strategy and financial performance.
Case Report Instructions
The report for this case is a bit different from other assignments in the course. For this report, copy and paste the tables that begin on the next page into a Word file (or delete this page and replace with a cover page). For each industry, indicate by typing your letter choice in the second column which data column you think goes with each company description (note that the descriptions have been truncated; see the case for a full company description). For example, in the first table titled “
Airline
”, indicate in the “Associated Correct Data Column” box whether “A major airline that flies domestically and internationally …” is data column A or B in Exhibit 6.1. You can type the letter (A or B) in the column box (it should be centered, but if not, please center your answer choice).
Then, you must provide at
LEAST
(more preferred for an excellent report) three (3) reasons for your choices. Type these in the space provided (reasons should be several sentences and they must directly relate to the data in Exhibit 6.1. For example, if you think that an airline that operates both domestically and internationally … would have more Cash and ST Investments than an airline that operates primarily in the United States …, write this as a reason and clearly explain why you believe this to be a reason. Your reasons for your choices are as important (perhaps more so) than whether or not your choices are correct.
A ...
Amazon Financial PerformanceIntroduction Amazon is o.docxnettletondevon
Amazon Financial Performance
Introduction
Amazon is one of the biggest online retailing companies that provide Cloud Services and production of electronic gadgets.
It operates in different market segments which include media, Electronics and Gadget Merchandise, and Cloud.
Amazon operates under a monopolistic competition industry and it has rivals that offers substitute products.
Amazon is one of the largest online retailing companies who deals with manufacture of electronic gadgets, and offer cloud services. The company has a product mix as it deals with diversified products and market segments.
The company operates in three major market segments; Cloud, Electronics & Gadgets, Media,
Its posses the characteristics of a monopolistic competition market. It faces stiff competition from EBay, Alibaba Group Holdings, Apple, and AutoZone among others.
2
Selection of comparable groups of companies
The comparable group of companies was selected on the following basis;
Market Segment
Consistent financial performance trend.
Market share
The four companies include EBay, AutoZone, Best Buy, and Wal-Mart Stores, Inc.
The logic used to determine the comparable groups of companies revolved three factors.
Market segment – amazon operates in three different market segment which include Media, Electronics and Gadgets, and Cloud services.
All the four companies have been selected from the three market segments.
Wal-Mart stores, Inc. – Retail and wholesale business
eBay – Media
Best Buy Co, Inc. – Electronics and Gadgets.
AutoZone, Inc.- Online retailing.
3
Amazon’s competitors
The four major rivals include
eBay
AutoZone, Inc.
Best Buy Co, Inc.
Wal-Mart Stores, Inc.
The above four companies shares common market features and goals. Some of the characteristics include establishment of new outlets, maximizing sales, and pricing and competition strategies.
eBay, Inc. operates as a commerce leader company including Marketplace, StubHub, and Classifieds platforms. It deals with in the provision of acquisitions and investments to help enable commerce on platforms for buyers and sellers online or on mobile devices. It includes marketing services, including classifieds, and advertising.
AutoZone, Inc. engages in the provision of retail and a distribution of automotive replacement parts and accessories.
Best Buy Co., Inc. provides consumer electronics, home office products, entertainment products, appliances and related services.
Wal-Mart Stores, Inc. deals in retail and wholesale business
4
Data extraction strategy, process and methodology
The following procedure was utilized in data gathering and methodology.
Internet search on financial databases.
Importation of data to the excel working sheet
Editing
Analysis
Data extraction, process and methodology took four procedures. First, as a team we conducted an internet search on financial databases to gather data for the four companies. We used Yahoo Finance to gather the data for all the compa.
Compose a paper using the five sources attached. The paper should .docxdonnajames55
Compose a paper using the five sources attached. The paper should summarize not PLAGARIZE all 5 articles regarding electronic medical records. APA FORMAT AND USE THE SOURCES GIVEN ONLY. MAKE SURE TO USE INTEXT CITATION FOR THEESE SOURCE. PAPER SHOULD BE 6 PAGES LONG.
Financial Ratio Analysis Worksheet
Your Full Name:
Ahmed Alothman
2011
2010
2009
Basic Rules
Liquidity
Current Ratio
1.50
1.6
1.2
Should be >1.00
Quick Ratio
0.86
0.95
0.6
Good to see close to 1
Leverage
Debt to total asset ratio
0.19
0.19
0.26
Good to see less than 1
Debt to Equity ratio
1.003
1.03
1.35
Smaller is better
Activity
Inventory turnover
7.8
8.3
7
Higher turnover will be better --- Smaller inventory level will increase the turnover!
Fixed asset turnover
3.3
3.2
3.2
Higher turnover will be better --- Smaller fixed assets level will increase the turnover (Productivity of the fixed assets)!
Profitability
Gross profit margin
0.3
0.3
0.3
Higher is better (Lower cost of goods sold or Higher sales will increase the margin) --- Strategic directions (Ex. Focusing on sales quantity or Lean operations)
Operating profit margin
0.06
0.06
0.06
Higher is better – Operational efficiency will be indicated. Better cost structure might increase this margin.
Net profit margin
0.04
0.03
0.03
Higher is better. Total profitability (Corporate profitability). Check the interest expense and Discontinued operations.
Return on total Assets (ROA)
0.06
0.06
0.06
Higher is better. Consider EBIT and portion of total assets. The total sales for each $1 of total assets.
Your own financial assessment / Analyses / Suggestions:
Liquidity of Staples:
Liquidity ratios are used to measures the ability of the company to pay off its current liabilities.
Using current ratio it shows that staples can pay off its current liabilities more than 1.50, 1.6, 1.2 times respectively and still remain with enough. The company is stable in paying off its current liabilities
Using quick ratio Staples can pay off its liabilities 86 percent, 95 percent and 60 percent respectively of its current liabilities.
Leverage of Staples:
Leverage measures the risk level. But for staples, the company's assets are far more than its liabilities thus the company can be able to access loan application since its ability to pay is far better and stronger. The company is less risky.
Staples has a Debt to equity ratio of 1 which means that investors and creditors have an equal stake in the company's assets. Lower ratio shoes a more stable business. Creditors always views a higher debt to equity as risky and the investors have not funded the operations as the creditors have. The company should try and look for ways to reduce on the Debt to equity ratio.
Activity of Staples:
This measures efficiency on how Staples can control its stock. Staples has a very good inventory control system. This company can sell off its inventory more than 7 times in a single year.
T.
AAPL Stock Forecast & Price:
Based on the Apple stock forecast from 22 analysts, the average analyst target price for Apple Inc is USD 175.41 over the next 12 months. Apple Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Apple Inc is Bullish , which is based on 11 positive signals and 4 negative signals. At the last closing, Apple Inc’s stock price was USD 138.20. Apple Inc’s stock price has changed by -8.13% over the past week, -11.30% over the past month and -3.12% over the last year.
Company Valuation Powerpoint Presentation SlidesSlideTeam
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Get ready-made Company Valuation PowerPoint Presentation Slides to analyse all the profit and net value your business has made. Conduct a thorough evaluation of a company’s management, capital structure, future earning prospects, and more with the help of professionally designed company valuation PPT presentation templates. Determine the current worth of a business and assess all aspects of a business. This deck comprises of several company valuation PowerPoint templates like valuation methodology, valuation steps, company valuation methodologies, determining free cash flow, valuation results, business due-diligence process, strategic due-diligence methodology, and more. Incorporate business valuation PowerPoint slideshow to estimate the selling price of the business. Use business valuation methods PowerPoint techniques for valuing a business asset such as cost approach, cost to build, replacement cost, market approach, discounted cash flow, forecast future cash flow, etc. Grab access to the company valuation complete PowerPoint deck for a business analysis. Employ a few jocular expressions with our Company Valuation Powerpoint Presentation Slides. It helps insert a bit of humor. https://bit.ly/3umYjTk
Adveritas (AV1) - Is Adveritas the next Dubber (DUB) George Gabriel
We compare and contrast to ASX-listed, global, SaaS companies - AV1 and DUB. Given DUB is more progressed in its global SaaS sales journey, we identify key insights for AV1 investors, based on DUB's historical experience.
Financial Analysis Paper Company NameStudent name Da.docxAKHIL969626
Financial Analysis Paper: Company Name
Student name
Date
Outline for paper
Notes:
· no abstract is needed for this paper
· double spacing is required. The outline is presented in single space for presentation purposes.
Important point: in the appendices you present financial data and your ratio analysis calculations. Within the narrative sections, you are to analyze the data and describe what the data is indicating. What do the numbers mean? What are the trends and how, based on the analysis, is the firm performing for its owners (stockholders) and within its industry. Use the data to prepare financial analysis.
Running head: COMPANY NAME 1
COMPANY NAME 8
Simply regurgitating the financial numbers in your narrative is not analysis and is not sufficient to receive a passing grade for this project.
Outline of paper
1. Page 2: Description of corporation, major products, industries, markets served, and any significant developments over the past three years.
a. Prepare a concise summary of your company using declarative sentences. The purpose of this section is to provide the reader with basic information on the company. Distilling your company down to one page of essential information should not be easy. Eliminate any extraneous “fluff” and avoid providing any interpretations or analysis. Numerical analysis is not part of this section. It is the only part of the paper that numerical analysis should not be included. This is a factual section. Assume the reader is a business professional.
2. Page 3: Overall descriptive analysis of the financials for the last three years
a. In this section you can now present key financial highlights of your company. At a minimum you should discuss sales and net income performance and any significant financial factors related to your company over the last three years. Use concise $ figures. For example, use $7.8m or $7.8b instead of $7,800,000 or writing $7.8 million. There is more key financial information than one can easily fit into one page so you must determine what is most important for the reader to understand the financial picture of the corporation as of the most recent financials.
b. If your firm has two or more published quarterly statements since the last annual report, be sure to prepare your analysis using the most recent quarterly data.
3. Pages 4-6: Descriptive analysis of the firms financials and ratio analysis
a. In this section the writer now gets into the financial details of the firm. The narrative in this section is based on the financials of the firm (Appendix A) and the ratio analysis (Appendix B).
b. What are the trends in your ratio analysis? What are the trends for the company as a whole and in comparison to key competitors and industry as a whole?
c. Ratios to include are Debt/Equity, ROI, ROE, ROA, current, and asset turnover. Cash coverage ratio is suggested to help prepare the cash flow analysis section.
Note: P/E ratio and EPS are to be an ...
Milestone Two Components 2, 3, and 4In task 4-2, you will provi.docxannandleola
Milestone Two: Components 2, 3, and 4
In task 4-2, you will provide answers to the Components 2, 3, and 4 assignment questions.
Component 2: External Environment and Competitive Position
Complete an industry analysis and a five forces model analysis including an assessment of the company's closest rival. Be sure to answer the following questions:
-What are the driving forces of change in the industry in which your company competes? How has your company changed its strategy to address driving forces?
-Where does the company stand within the industry based on the five forces model of competition analysis?
-Which of the five forces exert the most pressure on the company? What has the company done to relieve this pressure?
-What are your recommendations to further reducing pressure from these forces?
Component 3: Internal Environment and Competitive Position
Complete a SWOT analysis and a value chain analysis of the company you have chosen. Be sure to answer the following questions:
-How well has the company performed to stated strategic objectives or performance targets? Support your assessment with factual data.
-Compare the strengths, weaknesses, opportunities, and threats of the company to those of its competitors. How do the vision and values affect how the company will respond to each?
-What is the core competency of the company? How does this affect its standing within the industry?
-How has the company used its value chain activities to improve its competitive position?
-What are your recommendations in regard to the company’s competitive position and value chain activities?
Component 4: Competitive Strategy
Summarize the generic strategy employed by the company and how it helps the company achieve sustained competitive advantage.
-Which of the generic competitive strategy options is your company pursuing?
-Explain how your company is pursuing this generic strategy. How does it fit value chain activities specifically to support its generic strategy?
-How does pursuit of this strategy help your company achieve sustained competitive advantage?
-What are your recommendations in regard to the company's pursuit of a generic strategy or how it uses its value chain in this pursuit?
Milestone Three: Components 5 and 6
In task 6-2, you will provide answers to the Components 5 and 6 assignment questions.
Component 5: Strengthening Competitive Position
-Summarize how the company strengthens its generic strategy through complementary strategic moves. Be sure to answer the following questions:
-Outline what the company has done to fit its strategy to the industry and company situation.
-Has your company responded offensively or defensively, or both, to improve its strategic position? How?
-Has your company pursued complementary strategic options? Explain your answer.
-What are your recommendations for your company to pursue future complementary strategic options to strengthen its competitive position.
Component 6: The Global Marke ...
Running head COMPANY NAME 1 MBA 7200 Financia.docxtodd271
Running head: COMPANY NAME 1
MBA 7200 Financial Analysis Paper: Company Name
Student name
Date
Wilmington University
COMPANY NAME 2
Outline for paper
Notes:
no abstract is needed for this paper
double spacing is required. The outline is presented in single space for presentation
purposes.
Important point: in the appendices you present financial data and your ratio analysis calculations.
Within the narrative sections, you are to analyze the data and describe what the data is indicating.
What do the numbers mean? What are the trends and how, based on the analysis, is the firm
performing for its owners (stockholders) and within its industry. Use the data to prepare
financial analysis.
Simply regurgitating the financial numbers in your narrative is not analysis and is not sufficient
to receive a passing grade for this project.
Outline of paper
1. Page 2: Description of corporation, major products, industries, markets served, and any
significant developments over the past three years.
a. Prepare a concise summary of your company using declarative sentences. The
purpose of this section is to provide the reader with basic information on the
company. Distilling your company down to one page of essential information
should not be easy. Eliminate any extraneous “fluff” and avoid providing any
interpretations or analysis. Numerical analysis is not part of this section. It is the
only part of the paper that numerical analysis should not be included. This is a
factual section. Assume the reader is a business professional.
2. Page 3: Overall descriptive analysis of the financials for the last three years
a. In this section you can now present key financial highlights of your company. At
a minimum you should discuss sales and net income performance and any
significant financial factors related to your company over the last three years. Use
concise $ figures. For example, use $7.8m or $7.8b instead of $7,800,000 or
writing $7.8 million. There is more key financial information than one can easily
fit into one page so you must determine what is most important for the reader to
understand the financial picture of the corporation as of the most recent financials.
b. If your firm has two or more published quarterly statements since the last annual
report, be sure to prepare your analysis using the most recent quarterly data.
COMPANY NAME 3
3. Pages 4-6: Descriptive analysis of the firms financials and ratio analysis
a. In this section the writer now gets into the financial details of the firm. The
narrative in this section is based on the financials of the firm (Appendix A) and
the ratio analysis (Appendix B).
b. What are the trends in your ratio analysis? What are the trends for the company
as a whole and in comparison to key competitors and industry as a whole?
c. Ratios to include are Debt/Equity, ROI, ROE, ROA, curren.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
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when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
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@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
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USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
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@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
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Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
2. Table of Contents
Client Letter
Stock Information
Apple
Bristol-Myers Squibb
Dominion Resources
Jack in the Box
Southwest Airlines
Summary of Portfolio Findings
Pairwise Correlations
Statistical Analysis
Variability of Beta
Capital Asset Pricing Model
Appendices
Appendix A: Rate of Return Graphs
Appendix B: Statistical Analysis Data
Appendix C: Capital Asset Pricing Model Graph
Appendix D: Variability of Beta
Appendix E: Data for 10 Stocks
Appendix F: Data for S&P 500
Appendix G: Data for Treasury Bill
Appendix H: Data for Pairwise Correlation of 10 stocks
Appendix I: Data for Pairwise Correlation of 5 Stocks
Appendix J: Data for Rate of Return Graphs
Reference List
3. Samantha Hoffer
SHH Wealth Management
4492 Diamond Street
West Long Branch, NJ 07764
June 29, 2015
John A. Bryant
Kellogg Company
One Kellogg Square
Battle Creek, MI 49016
Dear Mr. Bryant:
I am writing you to follow up on the meeting we had last month - I appreciate your
time and willingness to sit down with me to discuss your current financial position, as
well as your future aspirations. Upon reflecting about our conversation, I have
determined that you are in need of a proper wealth management strategy to help attain
your financial goals.
Multiple statistical analyses were performed in an effort to compile an investment
portfolio that will best suit your requirements. This proposal will provide you with: a
detailed record of portfolio securities and the criteria used to select them, an analysis of
risk factors, as well as a comparative assessment to S&P 500 and 13-week Treasury
Bill returns.
I have outlined your primary objectives and portfolio expectations, based on what
we have previously discussed, as the following:
• Stocks with less risk than the market
• Portfolio Diversification
• Capital Preservation
Given these investment goals, I chose to select ten stocks listed on the S&P 500,
for the sake of simple market comparison. All ten of the chosen stocks belong to
different industries to help diversify the portfolio adequately enough to mitigate risk
factors.
Wealth Management
4. The following table includes these ten stocks with the sector and industry classifications:
Company (Ticker) Sector Industry
Apple Inc. (AAPL) Consumer Goods Electronic Goods
Bristol-Myers Squibb (BMY) Health Care Biotech & Pharma
Dominion Resources (D) Utilities Integrated Utilities
General Electric (GE) Industrials Electrical Equipment
Jack in the Box (JACK) Services Restaurants
Southwest Airlines (LUV) Consumer Discretionary Passenger Transportation
United Pacific Corp. (UNP) Industrials Transportation & Logistics
United Parcel Service (UPS) Services Express Delivery Services
Ventas (VTR) Services Real Estate Operations
Verizon Communications (VZ) Communications Telecom Carriers
The next step I took in evaluating these securities was to calculate the average
returns of the stocks (Appendix E) using the monthly adjusted closing prices for the past
ten years and one month (April 2005 to May 2015). This was done using the following
formula: P1-P0/P0 x 100.
Once these rates were determined, I was then able to perform a Pairwise Correlation
Analysis, as detailed in Appendix H, between these ten stocks, as well as the S&P 500,
and 13-week T-Bill. The ultimate goal when determining correlations between stocks for
a portfolio is to choose securities that have a low correlation to the market. This is
because the lower the correlations, the higher the diversification of the portfolio.
Conversely, the larger the correlation, the lower the advantage of diversification.
For your particular portfolio, I selected the decision rule of removing one of the
two stocks involved in the correlation calculation if the pairwise correlation is greater
than or equal to 0.3. The purpose of this step in the process is to ensure the portfolio is
well diversified. This eliminated exactly half of the stocks, leaving the following five low-
correlated stocks to comprise the portfolio:
Company (Ticker) Sector Industry
Apple Inc. (AAPL) Consumer Goods Electronic Goods
Bristol-Myers Squibb (BMY) Health Care Biotech & Pharma
Dominion Resources (D) Utilities Integrated Utilities
Jack in the Box (JACK) Services Restaurants
Southwest Airlines (LUV) Consumer Discretionary Passenger Transportation
Wealth Management
5. Once the stocks were established using the Pairwise Correlation Method, the
average rates of return are then calculated. The monthly-adjusted rates for each stock,
the S&P 500, and the 13-week Treasury Bill were individually totaled then divided by
120, the number of monthly returns for the ten year time period, to get the average rates
of return (Appendix B).
To determine the portfolio’s average rate of return, these five rates are added
together and divided by five. The average rate of return on the portfolio is 1.54. Using
the same calculation method as with the stocks, the average rate of return on S&P 500
comes out to 0.59, and the average rate of return on the 13-week T-Bill equals 0.11.
Beta measures the responsiveness of a security to movements in the market; in
this case, S&P 500 data is used as a proxy for the market portfolio. The formula to
calculate beta is as follows:
βi = Covariance (Ri, Rm) / Variance (Rm)
Covariance (Ri, Rm) is the covariance between the return on a particular stock
and the return on the market. The denominator is then equal to the variance of the
market, in this case the S&P 500. Using this formula, I determined the betas, as seen in
Appendix B.
The Sharpe ratio is the risk premium of the asset, relative to Treasury Bills,
divided by the standard deviation. It provides a reward-to-risk ratio, the larger the ratio,
the better the investment. Expressed algebraically the formula reads:
Sharpe Ratio = (Rav – T-billav)/standard deviation
The Sharpe Ratio calculations for the stocks and the portfolio can be found in
Appendix B.
Wealth Management
6. The Capital Asset Pricing Model (CAPM) is an equilibrium asset pricing theory
that illustrates that the equilibrium expected return on all risky assets is a function of
their covariance in a market portfolio. This formula implies that the expected return on a
security is linearly related to its beta.
This relationship between expected return and beta can be represented as follows:
E(Ri) = Rf + βi (Rm - Rf)
Rf is the risk-free rate, as determined by the 13-week Treasury Bill, and Rm is the
expected return on the market, as determined by the S&P 500. Appendix B shows the
expected returns, calculated using the CAPM.
Using these expected returns as Y-variables, and the corresponding betas as X-
variables, I constructed the CAPM Graph, which can be found in Appendix C. When
comparing the CAPM rates of return with historical average rates of return, it is clear
that the average rates of return are greater than the CAPM rates of return. This signifies
that I was able to create a portfolio that beats the market with the five low-correlation
stocks individually, as well as together, in this well-diversified portfolio.
In the end, I have created this portfolio specifically for your unique set of
investment objective and long-term financial goals. The low-correlation among the five
stocks that make up the portfolio allows for risk to be lower, while still realizing steady
returns on your capital over time. I appreciate your trust and consideration in building a
wealth management portfolio with me. If you have any questions or concerns, please do
not hesitate to contact me. I plan to call you next month to schedule a meeting to
discuss, after you have had sufficient time to look over the contents of this proposal.
Sincerely,
Samantha H. Hoffer
SHH Wealth Management
Wealth Management
8. Apple Inc.
Apple Inc. (Apple) is a technology company that provides personal
communication devices and related software and solutions. The company designs,
manufactures, and markets its mobile communication and media devices, personal
computers, and digital music players. Apple’s products and services include iPhone,
iPad, iPod, Mac, Apple TV, along with a number of consumer and professional software
applications. The company also sells a variety of Apple-brand and third-party Mac- and
iOS- compatible products. Apple has operations in North America, South America,
Europe, and Asia Pacific regions. The company deals with sales to consumers, to
small- and medium-sized businesses, as well as to education, enterprise, and
government entities.
For the financial year ending September 2014, Apple reported annual revenues
of $182,795 million, which is a 7% increase from revenues in the previous year. The
company generates these revenues through six primary product lines: iPhone (55.8% of
total revenues in FY14), iPad (16.6%), Mac (13.2%), iTunes (9.9%), accessories
(3.3%), and iPod (1.3%).
• iPhone is Apple’s line of smartphones that combine a phone, digital music
player, and internet device in one product.
• iPad is the company’s line of tablets, which include iPad Air and iPad mini.
• Mac is Apple’s line of desktop and laptop computers, which include
MacBook Pro and MacBook Air.
• Apple’s iTunes Application keeps users’ music, movies, and television
shows all organized together.
• Accessories include Apple TV, headphones, cases, displays, and storage
devices.
• iPod is Apple’s line of portable music and media players, which include
iPod Touch, iPod Nano, iPod Shuffle, and iPod Classic
Upcoming opportunities for Apple include the growth potential of Apple Pay, a
new mobile payment service that launched in September 2014. The steady growth of
the market for smart wearable devices also offers the corporation an abundance of
9. potential opportunities. Apple’s newest product, Apple Watch is a personal electronic
device that enables customers to communicate in new ways by combining an iOS-
based interface created uniquely for a small device with watch technology. Apple has
strategically positioned itself to benefit from these growing markets and effectively
generate continued revenue growth.
Bristol-Myers Squibb Company
Bristol-Myers Squibb (BMS) is involved in the discovery, development, licensing,
manufacturing, marketing, distribution, and sale of biopharmaceutical products. These
products are sold around the world to wholesalers, pharmacies, hospitals, government
agencies and medical professionals. BMS operates in North America, South America,
Europe, Asia, Australia, Africa, and the Middle East. The company has only one
reportable business segment, which is biopharmaceuticals. The biopharmaceutical
segment focuses on innovative medicines for serious diseases. BMS’ products include
chemically synthesized drugs as well as biologically processed products. The
company’s primary focus areas include cardiovascular drugs, virology drugs, oncology
medicines, neuroscience, immunoscience, and metabolic drugs.
As of January 2014, BMS and the California Institute for Biomedical Research
signed a worldwide research collaboration to develop anti-fibrotic therapies, and an
exclusive license agreement that allows BMS to develop, manufacture, and
commercialize preclinical compounds resulting from this collaboration. In early 2014,
both Five Prime Therapeutics and CytomX Therapeutics signed agreements with BMS
that will help advance the company’s immuno-oncology portfolio. The company’s
alliance and collaboration network for drug development and commercialization allows
BMS to mitigate risk while continuing to drive steady revenue generation.
10. Dominion Resources Inc.
Dominion Resources, Inc. (Dominion) is an integrated energy company that
engages in power generation, electricity transmission and distribution, natural gas
transmission, gathering, and storage and gas distribution services. Dominion operates
within 15 states in the US, making it one of the nation’s largest producers and
transporters of energy.
Dominion operates through three primary segments: Dominion generation,
Dominion energy, and Dominion Virginia Power (DVP).
• Dominion generation includes Virginia Power’s generation facilities and its
related energy supply operations. Also includes the generation operations
of the company’s merchant fleet and energy marketing.
• Dominion energy includes regulated liquefied natural gas operations and
producer services. Dominion energy’s gas distribution network harnesses
approximately 21,900 miles of pipe, which has approximately 10,900 miles
of gas transmission, gathering, and storage pipelines in Maryland, New
York, Ohio, Pennsylvania, Virginia, and West Virginia.
• DVP includes Virginia Power’s electric transmission and distribution
operations, and Dominion’s retail energy marketing operations. DVP’s
electric distribution network includes 57,000 miles of distribution lines in
North Carolina and Virginia.
Dominion has taken on numerous initiatives to help develop its renewable energy
business. Over the past year, the company has made several solar farm acquisitions
due to the increasing environmental concerns as well as rising energy prices. This shift
towards solar energy production enables Dominion to strengthen its renewable portfolio.
11. Development of the renewable energy business allows the company to leverage its
expertise to serve growing demands among renewable energy clients.
Jack in the Box Inc.
Jack in the Box Inc. (JACK) is a restaurant company that operates and
franchises Jack in the Box quick-service restaurants and Qdoba Mexican Grill (Qdoba)
fast-casual restaurants. JACK is one of the largest hamburger chains in the United
States, with over 2,888 Jack in the Box and Qdoba restaurants throughout the country.
The company generates revenues through two business segments: Jack in the Box
restaurant operations (76% of total revenues), and Qdoba restaurant operations (24%).
• Jack in the Box restaurants serve products targeted at the adult fast-food
consumer. During the financial year ending September 2014, Jack in the
Box operated 2,250 restaurants in 21 states, plus Guam. 431 of these
locations were company-operated, while 1,819 were franchises.
• Qdoba restaurants offer Mexican food in a fast-casual setting. During
FY2014, the Qdoba sector operated 638 restaurants in 47 states, plus the
District of Columbia and Canada. 310 of these locations were company-
operated and 328 were franchises.
In FY2014, the Jack in the Box segment recorded revenues of $1,127 million, a
decrease of 4.4% compared to FY2013. The Qdoba segment recorded revenues of
$357 million in FY2014, an increase of 14.9% over FY2013. During FY 2014, JACK
recorded revenues of $1,484 million, a decrease of 0.4% compared to FY2013. Its
operating profit was $162.3 million in FY2014, an increase of 17.4% over FY2013, and
net profit was $89 million in FY2014, an increase of 73.9%. Based on this data, it is
clear that the Qdoba restaurant segment is flourishing, resulting in a high profit margin
for the company as well as an increase in shareholder value.
12. Southwest Airlines Company
Southwest Airlines Company (Southwest) is a low-fare passenger airline that
provides air transportation in the United States and near-international locations
including Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic.
Southwest operates primarily through one business segment, which is providing
scheduled passenger and freight transportation. Further, the company operates through
two subsidiaries: Southwest Airlines and AirTran Airways (AirTran).
• Southwest Airlines offers point-to-point service, rather than the hub-and-
spoke system used by the majority of US Airlines. This strategy increases
the company’s revenues.
• AirTran Airways operates through a hub-and-spoke network system - half
of its flights start or end at its largest base in Atlanta. Additionally, AirTran
serves multiple markets with non-stop service from smaller bases of
operation in Baltimore, Milwaukee, and Orlando.
The total fleet operated by both Southwest and AirTran during FY2013 consisted
of 680 aircraft, 516 owned and 164 leased under operating and capital leases. In that
same year, both segments carried 108 million passengers with combined revenue
passenger miles of 104.3 billion.
Southwest Airlines generates revenues through three business segments:
passenger (94.5% of total revenues FY2013), freight (0.9%), and other (4.6%). The
growth present in the global tourism industry may aid Southwest in increasing its market
position. A strong recovery in the tourism industry has occurred since the 2008
recessional period. This industry is forecasted to continue growing into future years. The
company’s integration of the networks and operations of Southwest and AirTran has
greatly improved the route network. Customers have the ability to fly between any of the
13. 96 Southwest and AirTran destinations on one itinerary. This integration improves the
customer experience and will contribute to increased efficiencies for Southwest Airlines.
15. Pairwise Correlations
(Appendix H & I)
A pairwise correlation between stocks is a useful method to determine the
degree to which prices of stocks move together. In order to ensure a well-diversified
investment portfolio, it is important to first determine this relationship between the
historical returns of potential stocks and the market return. Both covariance and
correlation are figures used to evaluate how two variables are related. To calculate the
pairwise correlations, as shown in Appendix H, the covariance between each stock’s
returns and the S&P 500’s returns must be determined using the Excel formula. This
covariance is then divided by the standard deviations of the stock and the market to get
the correlation. The correlation will always be between +1 and -1.
The ultimate goal when determining correlations between stocks for a portfolio is
to choose securities that have a low correlation to the market. This is because the lower
the correlations, the higher the diversification of the portfolio. Conversely, the larger the
correlation, the lower the advantage of diversification. For this particular portfolio, the
decision rule was to remove one of the two correlated stocks if the pairwise correlation
was calculated to be greater than or equal to 0.3. The Pairwise Correlation Matrix of
Ten Stocks (Appendix H) highlights in red the pairwise correlations that exceed this 0.3
mark.
Stocks removed during this step establish the remaining five securities that will
be held in the portfolio. The outcome of this process can be seen in Appendix I,
Pairwise Correlation of Five Stocks, in which none of the correlations are greater than or
equal to 0.3. These resulting securities represent a set of five low correlated stocks.
16. Statistical Analysis
(Appendix B)
Once the portfolio holdings have been established using the pairwise correlation
method, the average rates of return are determined. The monthly-adjusted rates for
each stock, the S&P 500, and the 13-week Treasury Bill are individually totaled and
then divided by 120, the number of monthly returns for the ten year time period, to get
the average rates of return. As shown in Appendix B the average rates of return are as
follows: AAPL = 3.2; BMY = 0.95; D = 0.63; JACK = 1.64; LUV = 1.28.
To determine the portfolio’s average rate of return, these five rates are added
together and divided by five. The average rate of return on the portfolio is 1.54. Using
the same calculation method as with the stocks, the average rate of return on S&P 500
comes out to 0.59, and the average rate of return on the 13-week T-Bill equals 0.11.
Sharpe Ratio
The Sharpe ratio is the risk premium of the asset, relative to Treasury Bills,
divided by the standard deviation. It provides a reward-to-risk ratio, the larger the ratio,
the better the investment. Expressed algebraically the formula reads:
Sharpe Ratio = (av. R – av. T-bill)/std. dev.
As seen in Appendix B, the Sharpe ratios are as follows: AAPL = 0.32; BMY =
0.14; D = 0.11; JACK = 0.19; LUV = 0.11; Portfolio = 0.31.
17. Variability of Beta
(Appendix B & D)
Beta measures the responsiveness of a security to movements in the market; in
this case, S&P 500 data is used as a proxy for the market portfolio. The formula to
calculate beta is as follows:
βi = Covariance (Ri, Rm) / Variance (Rm)
Where Covariance (Ri, Rm) is the covariance between the return on Stock I and the
return on the market, and the denominator is equal to the variance of the market. Using
this formula, I determined the betas, as seen in Appendix B, to be: AAPL = 1.22; BMY =
0.54; D = 0.43; JACK = 0.78; LUV = 1.13; Portfolio = 0.82.
The portfolio beta can be calculated alternatively as a weighted average of the betas of
the 5 stocks:
βp =w1β1 +w2β2+w3β3+w4β4+w5β5
Where wi are the weights of each stock, in this case, the weight is 0.2 for each stock
because of the assumption that an equal amount of each stock in the portfolio will exist.
Additionally, the beta of the market will always be equal to 1, because if all securities
were weighted by their market values, the resulting portfolio is the market.
Appendix D outlines the variability of beta during the ten years of observation.
Beta calculations during the first 60 months and the last 60 months of the total 120-
month time period vary significantly from each other as well as the previously calculated
betas. During the first 60 months, the betas for all five stocks and the portfolio are
greater than their 10-year betas. During the last 60 months, the betas are lower than
their 10-year betas and first 60 months betas. I would consider these beta figures to be
significantly different from betas calculated for the 10-year period.
18. Capital Asset Pricing Model
(Appendix B & C)
The Capital Asset Pricing Model (CAPM) is an equilibrium asset pricing theory
that illustrates that the equilibrium expected return on all risky assets is a function of
their covariance in a market portfolio. This formula implies that the expected return on a
security is linearly related to its beta.
This relationship between expected return and beta can be represented as follows:
E(Ri) = Rf + βi (Rm - Rf)
Where Rf is the risk-free rate, as determined by the 13-week Treasury Bill, and Rm is the
expected return on the market, as determined by the S&P 500. Appendix B shows the
expected returns, calculated using the CAPM, to be as follows: AAPL = 0.7; BMY =
0.37; D = 0.32; JACK = 0.49; LUV = 0.66; Portfolio = 0.51.
Using these values as Y-variables, and the appropriate betas as X-variables, I
constructed the CAPM Graph, which can be found in Appendix C. It includes the
Security Market Line (SML) by adding a line connecting the average market rate of
return with its beta of 1, and the average risk-free rate of return with its beta of 0.
Comparing the CAPM rates of return with historical average rates of return, it is
clear that the average rates of return are greater than the CAPM rates of return. This
signifies that I was able to beat the market with my five low-correlation stocks,
individually, as well as together in this well-diversified portfolio.
19. Appendices
Appendix A: Rate of Return Graphs
Appendix B: Statistical Analysis Data
Appendix C: Capital Asset Pricing Model Graph
Appendix D: Variability of Beta
Appendix E: Data for 10 Stocks
Appendix F: Data for S&P 500
Appendix G: Data for Treasury Bill
Appendix H: Data for Pairwise Correlation of 10
Stocks
Appendix I: Data for Pairwise Correlation of 5 Stocks
Appendix J: Data for Rate of Return Graphs