OBJECTIVES / RESEARCH METHODS: The main objective of this study was to use two dividend-paying stocks to see how much we should invest in them to create the most optimized portfolio between the two companies. For this study we decided to use two of the major leaders in their respective sectors, Wal-Mart in consumer staples, and Microsoft in technology. We began by collecting the monthly closing stock prices with dividends incorporated over the last 61 months for Wal-Mart, Microsoft, and the S&P
Words: 682 - Pages: 3
Marriott Corporation: The Cost of Capital The risk premium will differ across all divisions, because this is the market (all assets) return versus the respective risk free rates for each division. In computing the risk premium, we should use the arithmetic returns for both the T-bills and market return for the period of 1927-1987. We are using the arithmetic average because the geometric average tends to underestimate the expected return. A reason for favouring the arithmetic mean is given in Kolbe
Words: 352 - Pages: 2
The character I have chosen is Lt. Jimmy Cross from the story “The Things They Carried.” Jimmy Cross is the leader of Alpha Company in the war of Vietnam, although he seems like he is not part of it. “He had difficulty keeping his attention on the war […] but then he would slip away into day dreams, just pretending, walking barefoot along the Jersey Shore” (p.279). This quote clearly shows that he was living in a parallel world between the war that he was living at that moment and his obsessed love
Words: 353 - Pages: 2
one plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals twoone plus one equals
Words: 1605 - Pages: 7
s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s s s s h h h h b b b bb s s s s s s s s s
Words: 2172 - Pages: 9
Event Study Analysis: CLM Chapter 4 Definition: An event study attempts to measure the valuation effects of a corporate event, such as a merger or earnings announcement, by examining the response of the stockprice around the announcement of the event. One underlying assumption is that the market processes information about the event in an efficient and unbiased manner (more on this later). Event Study Analysis The steps for an event study are as follows: – – – – – – – Event Definition Selection
Words: 2419 - Pages: 10
Tutorial 5, CAPM Investments Problem 1 Part B (Exercise n. 4, 8.a, and 8.b in the book). • What must be the beta of a portfolio with E(rp ) = 20%, if rf = 5% and E(rm ) = 15% ? • Consider the following table, which gives a security analyst’s expected return on two shares for two particular market returns Market Return 5% 20% Aggressive share 2% 32% Defensive share 3.5% 14% – What are the betas of the two shares? – What is the expected rate of return on each share if the market
Words: 251 - Pages: 2
BA 350 WEEK 7 ASSIGNMENT A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-7-assignment Visit Our website: http://hwsoloutions.com/ Product Description BA 350 Week 7 Assignment, 6-2 Required Rate of Return Assume that the risk-free rate is 6% and that the expected return on the market is13%. What is the required rate of return on a stock that has a beta of 0.7? ri = rRF + (Rm – rRF)bi Where: Bi = Beta rRF = risk-free rate rM = market risk premium ri = required
Words: 280 - Pages: 2
SEEMA KHEKARE1 and SUJATHA JANARDHAN2 1Department of Applied Mathematics, G.H.Raisoni. Inst. of Engg. & Tech. for Women, Nagpur. E-mail: seema.ssk83@yahoo.in 2Department of Mathematics, St. Francis De Sales College, Nagpur. E-mail: sujata_jana@yahoo.com Abstract: In this paper, we formulate and analyze a vector host epidemic model with non-monotonic incidence rates for vector and host both. We investigate the existence and stabilities of disease free equilibrium and endemic equilibrium. We prove
Words: 1385 - Pages: 6
CAPM essay In the second scenario BBBY would use its $400 million in excess cash and borrow the remaining funds until Question 2 a) We will need to calculate the debt-to GDP ratio for each year separately in order to compute the total accumulation. The following equations and variables are used in question a) ∆b=g-t+r-y* b g-t=2 i=3 π=1 r=i-π=3-1=2 y=1 b=0,9 (=90%) Year 1 ∆b=2+2-1* 0,9=2,9 byear 1=90+2,9=92,9 Year 2 ∆b=2+2-1* 0,929=2,929 byear 2=92,9+2,929=95,829 Year 3
Words: 766 - Pages: 4
