This following report aims to analyze, justify, explain, recommend and conclude on the financial modeling outcomes of four shares of four different companies. The analysis is carried out on the value at risk of a portfolio of four shares employing the techniques deployed in financial modeling…
The report is carried out on a 260-day value-at-risk (VAR) of the portfolio of the shares used to make the report. The shares have been analyzed on a daily basis, to normalize the matching volumes of the traded shares. Various plans, methods and project formulae have been utilized to consider the application to be obtained for a determining process. The data used in the analysis uses closing prices to depict how the entire analysis and procedural VBA analysis operates. The shares and dividends depicted in the data are collected from open sources that have been computerized and processed. Nevertheless, some of the information is slightly corrected in order to evade troubles cause by missing data in the analyzed time, share and stock trades patterns. Additionally, the data has been decreased to the industrial shares and stock trading. The data analysis will have a function at the opening part of non-changed stock market data that creates a stable statistical distribution. The methodologies used in this data analysis include stimulation employed in the Brownian motion concept, the analytic method of the VAR concept, the Monte Carlo concept, a historical analysis and non-parametric technique. The outline of the remaining sections of the analysis include a background analysis of the data sample, analytic VAR, Monte Carlo VAR, historical analysis and discussion section. The congruence model has put several considerations into deep concentration. These are the inputs, the components of an organization and the outputs of the organization, defining each of these components intensively. The inputs of an organization have been classified into three main categories, and an additional derivative input has been added. These are; the Environment related inputs, resources and organizational history inputs. The derivative input outlined by the model is strategy, as it determines the functionality, productivity and interrelation of the rest of the inputs (Charnes, 2011, p. 142). An organization has been broadly categorized into four key components which are the task, the individual, formal organization arrangements and relationships as well as information organizational aspects, such as leadership skills. From the components, the model has covered the outputs of an organization, which will be the core focus of our analysis. The outputs have been categorized into three main classes, which include Individual output, Group output and organizational output (Charnes, 2011, p. 142). Using the model, this paper will analyze a company outlining the various issues pertaining to the organization and the extent to which the organization has achieved efficiency as defined by the model and the creators. Table of summary statistics for each of your shares individually B(t) A(t) time Path 1 Path 2 Path 3 time Path 1 Path 2 Path 3 0 0 0 0 0 10 10 10 1 -1.5556 -0.8799 0.7468 1 9.5833 9.7860 10.2740 2 -2.6548 -0.1507 -0.8768 2 9.3036 10.0548 9.8370 3 -5.0247 0.0467 -1.8954 3 8.6426 10.1640 9.5814 4 -4.0943 -0.5172 -1.1894 4 8.9717 10.0448 9.8432 5 -3.9233 -1.2864 0.0331 5 9.0730 9.8641 10.2599 6 -1.1964 -1.1685 0.2872 6 ...
Cite this document
(“Financial Modeling Of Value At Risk Portfolio Essay”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/4740-data-analysis
(Financial Modeling Of Value At Risk Portfolio Essay)
“Financial Modeling Of Value At Risk Portfolio Essay”, n.d. https://studentshare.net/finance-accounting/4740-data-analysis.
The main intention of the study is to conduct an analysis of the Value at Risk (VaR) of a portfolio of 4 shares using the methods discussed in the above Financial Modeling. The four companies are taken into account for calculation of the shares and the Companies used for the analysis and they are the British Land Company PLC, Marks & Spencer Group PLC, Cairn Energy PLC and the Land Securities Group PLC.A clear analysis and the calculations are made in the study below.
Management of portfolios relies upon two theories which are; portfolio theory and capital market theory (Lam 2003). The recent upheavals in the financial markets have caused a disturbance in the way these theories of portfolio management are applied. According to Verghese (2008), these upheavals have seen economies of the European nations continue to struggle as their markets roil due to fears of new setbacks and double-dip recession possibilities.
It is an underlying assumption as well as a base structure of finance is that of its association with the time value of money and the risk associated with it (Ho & Lee, 2004, p.12). The development of the financial asset pricing models is used in private economies with the calculation of the risky commodities (Heller et al, 1986, p.97).
The bank of America has its financial and banking services spread all over the world in 40 countries. Bank of America completed the acquisition of Merrill Lynch in 2008 to become one of the largest players providing wealth management services across the world.
In its rapid transition to a modern economy, China is undergoing dynamic change in all of its business sector and industries, a situation that presents features unique to Chinese culture and China’s economy. This dissertation focuses on analysis of the portfolio risks utilizing Value at Risk (VaR) in the context of Chinese Stock Market.
But this is not to say that financial modeling cannot be performed manually.There are various financial models that a company can use in evaluating its investment projects. The only challenge for the company is to identify the model that will provide the most accurate information that can help the company make the right decision.
In economic and business forecasting, the accuracy of predictions is no better. Accrued evidence points out that assumptions made by probability models are in practice violated. Long-run memory undermines the existence of martingales in finance. Further, can stock prices uncertainty or 'noise' be modeled by Brownian motion Commensurate analysis of nonlinear time series has also followed its course in finance.
The paper highlights certain troubles caused by the variation in perceptions of risk by different corporate houses. The importance of risk assessment is evaluated through a qualitative research, by putting forward some risk theories. Quantitative approach is also undertaken as the risks are quantified.
In order to do this they will need to invest more on stores development within the first financial year as indicated by the 16.90% growth from 14.46%. Thereafter, this growth rate is expected to drop steadily for one year and stabilize (13%) in the last two years. It
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Financial Modeling Of Value At Risk Portfolio for FREE!