Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Alex sharpe's portfolio solution

06/01/2021 Client: saad24vbs Deadline: 6 Hours

ALEX SHARPE CASE STUDY 1


ALEX SHARPE CASE STUDY 2


Estimate the returns viability


The data provided shows that the riskiest stock is that of Reynold. The riskiest nature of Reynold is obtained from the fact that it has a monthly standard deviation of 9.17 and an annual standard deviation of 32.45.


Reynold is then followed by Hasbro’s regarding the extent of risk possibility. Hasbro’s has a monthly standard deviation of 8.12% and an annual standard deviation of 28.11%. The standard deviation of Reynold is almost twice of that of Hasbro’s.


The least risky stock is that of S&P 500 which has a monthly standard deviation of 3.6% and an annual standard deviation of 12.48%. The data shows that for the last five years 68% of the data points have drastically declined.


2. Suppose Sharpe’s position had been 99% of equity funds invested in S&P 500 and either one 1% in Reynolds or 1% in Hasbro. Estimate the resulting portfolio position. How does each stock affect the variability of the equity investment? How does this relate to your answer to Question 1 above?


Reynold serves a better place than S&P 500 based on the calculations done. The results of calculation show that Reynold has a standard deviation of 3.46%, which is smaller when compared to S&P 500. Also, the expected return of 59% is much higher than that of S&P 500. When Reynold and S&P 500 are combined, the variability of equity is lower than both are taken separately. This answer in question 2 relates to the answer given in problem 1 in that, S&P 500 seems to be much riskier than Reynolds when both taken individually.


3. Perform a regression of each stock's monthly returns (y-value) on the Index returns (x-value) to compute a ‘beta' (slope on x variable) for each stock. How does this relate to your answer to question 2 above? Use Excel to perform the regression.


The calculation of regressing analysis shows that Hasbro’s has beta coefficient more negative than Reynold, which has a beta factor of 1.42 while Hasbro’s has 1.42. Also, Hasbro’s is more negative than Reynold in general market aspect. The Reynold’s lower beta coefficient makes it have a relatively insignificant impact on portfolio impact. There is a close relationship between this answer and the one given in question 2. That is, at the weight of 1%, both Reynold and Hasbro have a standard deviation that is equal to each other. That is, even though Reynold has a high standard deviation. The situation is a result of Reynold having a lower beta that lowers its effect on the variance of the combined portfolio.


4. How might the expected return of each stock relate to its riskiness?


Generally, riskiness is directly related to stocks expected return. Bearing in mind that, the primary factor that is considered to determine the possible return of best fit is merely the expected return. Also, the risks that are directly related to expected return should be minimal as much as possible. This statement means that those individuals who are involved in investing in portfolios of more significant risks are compensated to the same degree as those individuals investing in overtime investments. One approach that can be used to minimize risks is to hold the stock. The alternative method that would serve the same purpose is to diversify the portfolio through the combination of two or more stocks. Portfolio diversification is one of the most appropriate ways since the funds are not place in one basket.


5. In what stock(s) if any should Sharpe invest?


The best stock that Sharpe should invest in is Reynolds. On the other hand, it would recommend the Sharpe to diversify the portfolio by combining both S&P 500 and Reynold. The main reason that is behind my suggestion of the combination of both companies is just that it will minimize or in some cases wholly evade the risks. Generally, there are many risks associated with basing the portfolio on one stock.


References


Southam, c. (n.d). Sharpe’s case study

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Helping Hand
University Coursework Help
Top Essay Tutor
Writer Writer Name Offer Chat
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$110 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$112 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$115 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

How is a star's color related to its temperature - Art history research paper outline - Example of acknowledgement for ojt student - Final Assignment - Duplication of column in a table derived table teradata - Topic 4 Assignment: Interview with a Healthcare Professional (VoiceThread) - Pickit 3 programmer application - Discussion: Healthcare Information Technology Trends, NURS 5051/NURS 6051: Transforming Nursing and Healthcare Through Technology - Social work professional values and ethics - Oracle smart view download for windows 10 - Which of the following is a microeconomic statement - Naive method forecasting excel - Rationale for government intervention in international trade - Nanomedicine & nanotechnology open access nnoa - Harron homes thornberries matlock - Nist sp 800 34 - Marketing Homework - Discussion - Mail fatima edu ph log in - Management daft 13th edition pdf - The equation which reflects a cvp income statement is - Malu kangaroo teacher notes - What does poetic devices mean - IP2 - Learning Theories - Importance of establishing credibility in business communications - Museum by naomi shihab nye - Icp savannah kit price - Nursing interventions for impaired parenting - Beeler furniture company bank reconciliation june 30 20y2 - Urzeala tronurilor carte pret - Hsc multiple choice questions - Environmental argumentative essay - Discussion And Reflections(Essary)- W3 - Well behaved women seldom make history questions - One night the moon this land is mine analysis - Insider's guide to academic writing - The love of the father chords - Bulleen and templestowe community house - How to calculate total stockholders equity on a balance sheet - Database Management -8 - Assignments and discussions - Facial recognition software its reliability effectiveness and admissibility - Casp uk net - Gapdh molecular weight cell signaling - Electronic gmbh encoder d 78647 wiring diagram - Robin rhode he got game - How to write a self assessment reflection paper - Coach greg anabolic french toast - Milo sensor wristband - Late submission penalty latrobe - Whittlesea council register dog - 8-4 Project Part Two: Presentation - What is the strategic issue facing mystic monk coffee - Permutations and combinations hsc questions - Politics - How to do a kinship chart - Help with HR course - Jeff nippard intermediate program pdf - Dmu academic calendar 2018 19 - Law of contract assignment topics - Shark tank season 9 episode 12 - Ucla masters mechanical engineering - 3 year old child observation report pdf - Al kitaab part 1 - Richard branson leadership style - Literature - How are plant assets reported on the balance sheet - How to get motivated to do homework - Resumen - Samovar and porter definition of culture - A0 width and height - Discussion And Reflections(Essary)- W4 - Hank b marvin net worth - Case study 10 celiac disease - Hum 100 project 1 artifact chart - Geology Projects 5 & 6 - Application process flowchart - What are the selection criteria for hardware and software selection - Example of a thesis statement of a short story - Dulux texture paint colours - Q10 the temperature coefficient worksheet answers - Peplau nursing theory ppt - Frm exam admission ticket - 1p 2p 3p parking australia - Dan patrick celebrity bracket challenge - Intended only for brilliant answers - Advantages of straight salary - Exmo a sr sra s - Budget constraint khan academy - Bessie dunlop witch of dalry - How equifax neglected cybersecurity and suffered a devastating data breach - English - Delivering health care in america a systems approach - Alanis morissette ironic controversy - Systematic and Unsystematic Risk Discussion Questions - Critically evaluate essay structure - Medical law ethics & bioethics for the health professions pdf - Women in film noir janey place - Bs1361 short circuit capacity