| |Marriott Corporation: | |Cost of Capital | Concepts Covered Cost of Equity: Cost of Equity is the minimum
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50 belonging to CNX Nifty and through data from Jan’2000-July’2014; we try to find whether one can earn excess returns from the market in the long run. We use Capital Asset Pricing Model (CAPM) to test for excess returns. The variable of our interest is the alpha or the intercept term while applying regression as stated under the CAPM model. For this, we take the return on the CNX Nifty Index as return on the market and the yield on 91-Day T-Bills as a proxy for the risk free rate. Our results show
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Martin and David Drews- IPmetrics LLC Introducation Unlike many of the other assests found on a company’s balance sheet, the intangible assets, such as patents, trademarks and copyrights, are among the most difficult to quantify in terams of their value. It becomes further complicated to ascertain value when contemplating more obscure intangible assets, such as trade dress, trade sectets or software code. While difficult, the value of these assests can be accurately calculated via a number of
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Deepak K S Roll No: 2014201 Section D FM Assignment 2 Stock: NATCO Pharma ------------------------------------------------- Exchange: NSE Beta calculation using direct method: Covariance | = | 0.00492 | Variance | = | 0.00517 | Beta | = | 0.951 | Table: Regression Summary Output Regression Statistics | | | | | | | | Multiple R | 0.516 | | | | | | | | R Square | 0.266 | | | | | | | | Adjusted R^2 | 0.260 | | | | | | | | Standard Error | 0
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Not Valid. Risk-free rate is the rate when there is no risk; therefore, the return is the lowest. Since other portfolio must have some risk, it definitely has higher expected returns. 3. Not Valid. Other portfolio, when combined with risk free asset, will provide a larger CAL slope and a higher return. 4. Not Valid. It is possible to reach a minimum variance portfolio without some securities. 4. E(S) = 20%, E(B) = 12%, STD(S) = 30%, STD(B) = 15% 5. 7.Ws=((.2-.08)*.0225-(.12-.08)*
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FIN 6275 (Part I) Investment Analysis and Global Portfolio Management Spring 2015 Homework 2: Portfolio Evaluation This homework will assess the performance of your portfolio that you created on Bloomberg at the beginning of class. I. Portfolio: 1. Provide a print out of the portfolio you formed at the beginning of the semester. Hint: Go to Bloomberg and type PRTU. Then choose your portfolio by clicking on it: print and provide that screen which lists what you
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its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed.1 Here is how we calculate it: 1) Open Excel and enter all historical portfolio values found here http://www.stocktrak.com/private/account/graphportfolio.aspx (click on Historical Portfolio Values)
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Midland Energy Resources, Inc.: Cost of Capital Executive Summary Midland Energy Resources, Inc. is a global energy company comprised of three different operations – oil and gas exploration (E&P), refining and marketing (R&M), and petrochemicals. E&P is Midland’s most profitable business, and midland anticipated continued heavy investment in acquisitions of promising properties, in development of its proved undeveloped reserves, and in expanding production. Midland wanted to boost
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Q.1 What is scurity Market Line The security market line (SML) equation is the Capital Asset Pricing Model. It is used to price risk, i.e., it is used to specify the risk/return relationship of a particular asset or portfolio, regardless of the level of diversification. The SML equation (provided with the CFP Board Exam) is: ri = rf + (rm - rf) βi The SML equation states that the return of a specific investment is equal to the risk-free rate plus a market risk premium multiplied
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stock or industry. This type of risk is both unpredictable and impossible to completely avoid. It cannot be mitigated through diversification, only through hedging or by using the right asset allocation strategy. | | Investopedia explains 'Systematic Risk'For example, putting some assets in bonds and other assets in stocks can mitigate systematic risk because an interest rate shift that makes bonds less valuable will tend to make stocks more valuable, and vice versa, thus limiting the overall change
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