Investment Analysis Case Study example
Masters
Case Study
Finance & Accounting
Pages 6 (1506 words)
Download 0
INVESTMENT ANALYSIS INVESTMENT ANALYSIS (Your name) (Your instruction) (Your instructor’s name) (Your course) (Year) Event study Commonwealth Bank of Australia is a company that is based on Sydney Australia, it as founded in 1911 and its main line of business is provision of various banking and financial products and services to retail, small businesses corporate customers as well as institutional customers in Australia, New Zealand, the Asia pacific region, United Kingdom and the United States (Yahoo finance, 2012a)…

Introduction

The estimation period on the other hand is period between day -510 and day -11. The closing adjusted weekly prices for the Commonwealth Bank of Australia and the all ordinaries index were obtained from yahoo finance for the estimation period and the closing adjusted daily prices were also obtained from yahoo finance for the event window (Yahoo finance 2012b and 2012c). The all ordinaries index represents the market returns. Estimation of the market model The weekly returns of the Commonwealth Bank of Australia and the weekly logarithmic returns of the All Ordinaries Index were calculated using the formula ln (Pt/Pt-1) where Pt is the adjusted closing price of the security at time t and Pt-1 is the adjusted closing price of the security at time t-1. The returns of the Commonwealth Bank of Australia and the returns of the All Ordinaries Index for the estimation period as presented on a linear graph are as shown in the chart below. ...
Download paper
Not exactly what you need?

Related papers

Investment analysis
Efficient Markets Theory The theory is based on the assumption that information available in the securities market such as price levels is extremely efficient in reflecting the performance of the assets in the market. The general view regarding the theory is that information spreads in the shortest time possible and gets incorporated in the prices of assets in the market (Hughes, 2005, p. 118).…
Investment analysis
Analysis: Moments of distributions Asset Type Symbol Volatility Expected Excess Growth Rate Skewness Kurtosis Excess Asset ANZ.AX 23.59% -5.54% -0.18 3.46 Asset BHP.AX 24.21% -9.58% -0.08 0.91 Asset BOQ.AX 27.08% -24.81% -0.07 0.54 Asset HVN.AX 27.02% -34.38% -0.02 1.69 Asset TLS.AX 19.52% 1.48% -1.04 9.31 Asset WOW.AX 15.13% -10.19% -0.18 4.26 Factor ASX300 17.49% -10.41% -0.15 0.81 Volatility…
Financial Investment Analysis
This, particularly, must be challenging for companies with global operations that may have their cash balances fragmented across different geographies, banks, and bank accounts which make accessing cash difficult (Huang 2003). In this regard, this paper seeks to address the issue of efficient diversification as a comprehensive strategy in liquidity and stock return. Liquidity of an asset explains…
Investment Analysis Coursework 2001
‘Herd’ implies a social grouping of people, who have similar understanding or perception about anything. Here ‘herd’ implies the people, who have the same viewpoint within the stock market. The above statement briefs that market movements are dependent on individuals. If a person buys a particular stock and he is a popular figure in the community and society, then every individual intends…
Stock Investment Analysis
By careful analysis of the YTD returns it can also be observed that the short term yields for both the index as well as the FLCSX is higher than the long term yields. The yield differential between the 1 year return and 10 year return for FLCSX is 11.02% whereas the same is 9.9% for S&P 500. This implies that for the same time horizon, when the YTD returns of FLCSX is compared to that of S&P 500,…
MAF307 EQUITIES AND INVESTMENT ANALYSIS
The strategic analysis of the group indicates that with continued development of new initiatives and business products, the group is likely to expand its client base by entering new markets. The company’s salary packing business continues to provide an annuity stream of income that further allows cross-selling of company’s other products such as leasing services. The company has a very strong…
Stock Investment Analysis
What each and every investment requires is to perform well and fetch good returns. This is made possible when the business or investment is able to consistently build and maintain a long term growth on capital. The FLCSX fund tries to meet this general requirement through the investment in large capitalization stocks across the world (Vishwanath, & Krishnamurti, 2009). These large capitalization…