...Report of CVS Pharmacy’s Excess Return I. company introduction CVS Pharmacy (styled as CVS) is an American pharmacy retailer and currently stands as the second largest pharmacy chain, in the United States, with more than 7,600 stores, and is the second largest US pharmacy based on total prescription revenue. II. Purpose To determine if there are excess returns on CVS’ stock. III. Time period of data Monthly Fama/French Benchmark Return(SMB, HML, Rm-Rf), Monthly risk-free rate and Monthly price of CVS from Oct 2005 to Oct 2015. IV. Test of the correlation The correlation matrix for the excess return variables (SMB, HML, Rcvs-Rf, Rm-Rf) | Rm-Rf | SMB | HML | Rcvs-Rf | Rm-Rf | 1 | | | | SMB | 0.394264 | 1 | | | HML | 0.424707 | 0.305891 | 1 | | Rcvs-Rf | 0.597283 | 0.305935 | 0.197747 | 1 | Analysis: V. Serial correlation tests Method: Durbin-Watson statistic Procedure: first, we use the formula DW=t=2Tεt-εt-12t=1Tεt2 to calculate the DW value. It is 2.2161. It is higher than 2.0 so we use (4-DW=1.7839) to compare with the criteria. Then we find that the critical values dl and du for 121 observations when there is one independent variable are 1.65 and 1.69. Because the DW statistic of 1.7839 for the regression is higher than du, we can’t reject the null hypothesis of no serial correlation. Conclusion: There is no serial correlation on the CAPM model. VI. CAPM model: Rcvs-Rf=α+β(Rm-Rf) 1. Model The Rcvs-Rf...
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...Risk & Return Analysis: Analyzing an equally weighted portfolio of investments in Amazon, Inc., Yahoo! Inc., and Direct TV stock compared to the S&P 500 Introduction: Every day, millions of investors spend countless hours following the stock market in the hopes of striking it rich. Making the right moves at the right moments is crucial when one looks to make large returns in the market. While luck affords many investors the opportunity to make lucrative returns in the stock market, this reward does not come without risk. In order to balance their returns and the amount of risk that they are exposed to, many investors create an investment portfolio as a means to mitigate risks in the market at the expense of foregoing potentially higher returns on their investment. To illustrate the effects that a diversified portfolio can have on the amount of risk an investor takes on as well as the returns that the investment generates, a sampling of three random stocks and the S&P 500 index was created to examine the effects that diversification has on investment risk. Investments: For this analysis, monthly stock data from December 1, 2009 – December 1, 2014 was compiled on three stocks and the S&P 500. The three investments chosen for the portfolio were Amazon.com Inc. (AMZN), Yahoo! Inc. (YHOO), and DirectTV. (DTV), and each represent 25% of the portfolio. In order to analyze the risks associated with each stock, a Risk-Free rate of interest must be established in order...
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...Return Fire Robert Cohen’s 2015 photograph from the Ferguson/Michael Brown Riots is an incredibly moving and accurate example of the scenes found in that Missouri suburb at the time. The photograph was captured on August 13th, 2014, by Mr. Cohen for the St Louis Post-Dispatch. The shooting of Michael Brown occurred on August 9, 2014, in Ferguson, Missouri. Brown, an 18-year-old African-American male, was fatally shot by Darren Wilson, 28, a white Ferguson police officer. The disputed circumstances of the shooting of the unarmed young man sparked existing tensions in the majority-black city, and protests and civil unrest erupted, namely the “Black Lives Matter” movement and the “Hands Up, Don’t Shoot!” Movement. Figure 1. Edward Crawford returns a tear gas canister fired by police...
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...Last night on a new episode of Return to Amish there was a lot of talk about Abe Schmucker getting dental work done. It was going to cost over $20,000 to get it done so Rebecca decided that it was time for her to get a job and help him pay for it. He went and saw the same dentist that helped Rebecca when she got her dentures done. Now Kate Stoltz is speaking out about how Amish people can get dental work done if they want to and she went to her Twitter to share her thoughts. Kate Stoltz shared her thoughts and said, "Just to make it clear... A lot of Amish go to dentists. It's not forbidden and usually if they don't it's because of trying to save money. There's this big misconception because of the show that Amish don't believe in dentists or doctors. Amish believe in necessary care. I have 3 brothers that even got braces to improve their teeth.. A lot of Amish people believe in preventative care." Abe made it sound like Amish don't do this and obviously he didn't as a child....
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...Guerre. This new Martin Guerre is taken back almost right from the start from his fellow villagers and family. His family and friends so happy he has returned. But has he really returned? We learned throughout the book “The Return of Martin Guerre” that this is not the case. After the so-called Martin Guerre has a argument over family finances and the sale of some lands that the family owns, he is accused by his uncle and father-in-law Pierre Guerre of being an impostor. Soon following this is a trial, in the trial Martin Guerre finally tells the truth to his people. He is Arnaud du Tilh and has been fooling everyone for the past three years. This only comes after he is forced to give his real name as the real Martin Guerre appears in court. “The Return of Martin Guerre” is not only the story of how one man tricked an entire town, it is the speculation of Natalie Zemon Davis that Bertrande de Rols was an accomplice to Arnaud du Tilh. Davis drives in...
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...The Return of Martin Guerre Film: Microhistory? History is a broad field and therefore it is no secret as to why historians tend to study within a select few of numerous sub-fields. Even with this specificity, one may find that there are still some events that warrant more attention than others; to achieve a deeper understanding of such instances, they may seek to analyze a microhistory. A microhistory is an “intensive study of small-scale event or places, or individuals,” (Lecture 11/3) which presents an opportunity to learn about the greater society by examination of a particular instance. Typically, these studies attempt to reconstruct people’s worlds, in both a mental and physical sense, while focusing on rather unusual tales (Lecture...
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...Journal of Accounting and Economics 11 (1989) 295-329. North-Holland FINANCIAL STATEMENT ANALYSIS AND THE PREDICTION OF STOCK RETURNS* Jane A. O U Santa Clara university, Santa Clara, CA 95053, USA Stephen H. P E N M A N Universi(v of California, Berkeley, CA 94720, USA Received January 1988, final version received April 1989 This paper performs a financial statement analysis that combines a large set of financial statement items into one summary measure which indicates the direction of one-year-ahead earnings changes. Positions are taken in stocks on the basis of this measure during the period 1973-1983, which involve cancelling long and short positions with zero net investment. The two-year holding-period return to the long and short positions is in the order of 12.5%. After adjustment for 'size effects' the return is about 7.0%. These returns cannot be explained by nominated firm risk characteristics. 1. Introduction F i n a n c i a l s t a t e m e n t analysis identifies aspects of financial statements that a r e r e l e v a n t to investment decisions. O n e goal of the analysis is to assess firm value from financial statements. M u c h empirical a c c o u n t i n g research has a t t e m p t e d to discover value-relevant accounting attributes in o r d e r to enhance financial s t a t e m e n t analysis. T h e a p p r o a c h taken in this work assumes that m a r k e t price is sufficient for d e t e r m i n i n g firms' values a n d thus serves as a b e n...
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...Transcript Analysis If you owe back taxes, or have unfiled returns, or are in any way concerned about an IRS problem, it is best to first find out what the IRS knows about you. This information about you can be obtained from an IRS account transcript. An IRS account transcript can tell us: 1. How much you owe in tax, interest and penalties. 2. The actual number of unfiled returns you have. 3. If you did not file a tax return, whether the IRS filed an estimated return for you. 4. If the IRS can levy your bank accounts and wages, or seize your property. 5. How long the IRS has left to collect your debt. 6. When you filed your return, if there have been any audits. 7. If you have the option of filing bankruptcy on the IRS to eliminate your tax...
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...For a third, and final, perspective, I will look at a video entitled “Arab and Jew: Return to the Promised Land.” The video goes over the U.N. Partition Plan of 1947, and states how the Jews accepted the plan, but the Arabs did not. It talks of how the Arabs started a war with the Jews, which ultimately turned to their demise in Israel. The video talks of the “Ideology of Return,” which states how the Jews across the world with to return to their promised land, and the Arabs want to return back home following the war. But in 1967, another war began between the Arabs and Jews. “Israel preemptively struck against the Arab armies in 1967, acquiring land that burdened it with a “twilight war” against the Palestinians” (Arab and Jew, 18:15). In this attack, they defeated Egyptian, Jordanian, and Syrian armies. After all...
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...A COMPARATIVE ANALYSIS OF VARIOUS INVESTMENT AVENUES WITH RESPECT TO RISK & RETURN A Project Report Submitted in partial fulfillment of the requirements for the Award of Degree of E-MBA Submitted by : Prabhjeet Singh [pic] BHARATI VIDYAPEETH DEEMED UNIVERSITY, PUNE (INDIA) School of Distance Education (SDE) Academic Study Center : BVIMR, New Delhi (University established under 3 of the UGC act,1956) CONTENTS |S.No | |P.No. | | |Acknowledgement |2 | | |Certificate |3 | |1. |Introduction | | | |1.1 : Introduction |6-7 | | |1.2 Company Profile | | | |1.3 Industry Analysis |8-14 | | |1.4 Problem in the Organisation | | | |1...
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...Financial Management – Module Assignment Financial Ratios, Risk and Return Analysis of PT Ace Hardware Indonesia Tbk PREFACE This Financial Management Module Assignment has been prepared to fulfill the requirements of the subject. In this module assignment, we will discuss our analysis about PT Ace Hardware Indonesia Tbk as our object of this assignment. We reviewed and analyzed the firm’s financial statements periodically, both to uncover developing problems and to assess the firm’s progress toward achieving goals. Financial ratios enable financial managers to monitor the pulse of the firm and its progress toward its strategic goals. We also analyzed about a firm’s risk and expected return directly affect its share price. It is therefore the financial manager’s responsibility to assess carefully the risk and return of all major decisions so as to ensure that the expected returns justify the level of risk being introduced. It is hoped that this module assignment can fulfil the requirements of the subject in this semester. Jakarta, December 2010 Team BRIEF CONTENTS COVER PAGE 1 PREFACE 2 BRIEF CONTENTS 3 CHAPTER 1 INTRODUCTION A. PT Ace Hardware Indonesia Tbk 5 B. Corporate Vision 6 C. Corporate Mission 6 D. Corporate Culture 6 CHAPTER 2 FINANCIAL STATEMENTS A. Balance Sheets as of December 31, 2005, 2006 7 B. Balance...
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...CHAPTER ONE INTRODUCTION 1.0 OVERVIEW This paper intent to analyze the performance of Islamic equity unit trust funds’ in CIMB Wealth Advisors Berhad by comparing with the FTSE Bursa Malaysia Composite Index (KLCI) as benchmark. This chapter will discuss the background of the study, historical development of unit trust industry in Malaysia, understanding unit trust, problem statement, research objectives and the significance of the study. 1.1 BACKGROUND OF THE STUDY A plenty of investments alternative can be seen nowadays. But it’s depends on people which alternative they prefer to invest or depend on their skills of investing in such instruments. Most of the people who are lack in financial knowledge or investing skills will prefer to make investments in unit trust funds. There has abundance of benefits in unit trust and also can be advantageous to the small investors. Unit trust is an ideal way for small investors to invest for their future. Small investors are people who earn their living engaged in activities not related to the financial arena. They are aware that investing is important to them, but they lack of know-how to make the right decisions. For people who are unable or unwilling to do research and analyze investment markets and climate on their own, unit trusts is a good way to invest. In order to maintain a portfolio of stocks in the share market, a person has to keep himself up-to-date with market information and climate. For many people, this is difficult...
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...INVESTMENT ANALYSIS Table of Contents 1.0. Introduction: 3 3.0. Advantages of frequency distribution: 3 4.0. Analysis of returns of Reliance industries limited 4 3.1 Analysis of return of ONGC: 5 3.2 Analysis of return of Bharti Airtel: 6 4. Measurement of central tendency: 6 4.1 Mode: 7 4.2 Median: 7 4.3 Mean 7 5. Conclusion: 8 REFERENCES 10 1.0. Introduction: Generally shares are issued in the primary market and new issued shares are traded in the secondary market. BSE and NSE are two renowned stock exchanges which plays an important role in Indian stock market. Most of the big companies in India are listed in these stock exchanges. The companies are enlisted with these stock exchanges as per rules and regulation specified by particular stock exchanges (Greer and Kolbe, 2008). In Indian context the company distributes the shares in lieu of capital with the help of these stock exchanges. It is an essential pillar of private sector companies. Mallin and Ow–Yong (2009) commented that capital formation is the main function of stock exchanges. Beside the main function stock exchanges in India do lots of work. It provides a place where all the securities are traded. Security market provides a linkage between saving sector and corporate sector. Stock market generally provides the all the information about price and trading of the securities altogether. The author selects three big companies i.e. Reliance industries ltd, ONGC, Bharti Airtel Ltd, to compare...
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...financial analysis of Caterpiller Inc. (CAT). The use of various analytical tools, the assignment covered major fundamental parameters relating the company and its stock. The analysis consisted of stock reporting analysis, ratio analysis, duo point analysis, weekly return analysis and the analysis of cost of equity. The stock reporting analysis part of the project analyzed the stock selected with respect to the market Index. For the purpose of analysis the prices of both stock and index were downloaded for the period beginning 15-Jan-2009 till 15-Nov-2011. Ratio analysis had been used as the primary tool for evaluating the performance of the company. The ratio analysis helps in analyzing the probable casual relationships among different items after analyzing the past results. These ratios are derived after analyzing the past results and helps management to prepare budgets, to formulate policy and to prepare future plan. Ratio analysis also helps in making inter firm comparison and also comparisons between different divisions of the company. The required rate of return of CAT is calculated with the help of CAPM model. The model explains the relationship between the systematic risk associated with a stock and its expected return. In this model a stock’s expected return is the risk free rate of return (generally return on Govt. Treasury bonds is taken as risk free rate of return) plus a risk premium based on the stock’s systematic risk. Analysis Stock Reporting Analysis The...
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...ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 Under the guidance of Prof. D.P.TRIPATHY DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 National Institute of Technology Rourkela CERTIFICATE This is to certify that the thesis entitled “ANALYSIS AND INTERPRETATION FINANCIAL STATEMENTS: CASE STUDIES” submitted by Sri Sudip Das, Roll No: 10605038 in partial fulfillment of the requirements for the award of Bachelor of Technology degree in Mining Engineering at the National Institute of Technology, Rourkela (Deemed University) is an authentic work carried out by him under my supervision and guidance. To the best of my knowledge, the matter embodied in the thesis has not been submitted to any other University/Institute for the award of any Degree or Diploma. Date: (Prof. D.P. TRIPATHY) Dept. of Mining Engineering National Institute of Technology Rourkela-769008 ACKNOWLEDGEMENT I wish to express my deep sense of gratitude and indebtedness...
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