From the data, volatility is a measure of variation in the average trajectory leading to a risk. BOQ stocks have the highest variation at 27.08%. This implies that there is an increase in the interests hence the frequency of financial data is high leading to high volatility. HVN stocks have high volatility, as well. There is a decrease in volatility where BHP and ANZ stocks are low indicating a returns pattern which is in a stochastic process. As a result of nonparametric analysis, the pattern in the volatility changes because of financial returns making the volatility of WOW and ASX300 low. The rate of returns of TLS stock is high because the risk is considerable; ANZ and BHP follow as there expectation of growth is low due to high risk. BOQ and HVN stocks have a low growth rate expectation because they have a high risk unlike the rest of the stocks.All the stocks have a negative skewness where TLS has the most negative skewness. This is because of the risk while HVN has a negative skewness because the risk is low. TLS stocks have a high measure of kurtosis, due to high risk expectation while BOQ has a low measure of kurtosis because of the risk and growth rate being low.HVN Company shows a negative Mu while the volatility is positive, this applies for BOQ, BHP and WOW. There is a positive Mu for ANZ and TLS as well as the volatility. The results provide grounds for future decision making as well as the future behavior of the stock. The observations are constant at 531 from 2010 to 2012.
Analysis of alpha and beta
Alpha is the measure of the residual risk, where in the data BHP, ANZ and TLS stocks have a high residual risk while HVN, BOQ and WOW stocks have a low residual risk. Beta is how sensitive the stock returns are to the outcome on the index of the market. The sensitivity of HVN stock is between zero and one implying that there is an investment having low volatility. BOQ, HBP and ANZ stocks are above one implying that the volatility of the stock is more than index. ASX300 stocks have a beta equal to one implying that there is a matching index (Prime, 2007).
On the basis of detailed examination concerning each stock situation in ASX300, the security from each different section has makes contributions that vary to the investment income. From the smart folio, the six assets shown in the portfolio attain almost 4% of excess
The major aim of this appraisal report is to elaborate and explain investment portfolio for investors and executives by examining six stocks conditions. This paper "Investment portfolio for investors and executives analysis" will show the uncertainties of these stocks and also benefits of them…
goals along with level of acceptable risk and potential return (Bodie, Kane, Marcus, 2002). There are a number of decisions and subsequent steps that a potential investor must follow in order to successfully build a well diversified investment portfolio, one that suits an individual’s short term investment goals and their realistic long-term financial and retirement objectives.
Data of five different stocks have been taken into consideration for the same and 5 years of data have been taken into account. Different statistics provision could be taken into account for the same like Average return, Standard Deviation, Correlation and other.
Treynor ratio refers to a measure of excess returns that can be obtained from a given investment operating under a risk free rate. Treynor ratio utilizes beta rather than standard deviation when determining portfolio returns. Therefore, Treynor ratio assumes that relevant risk is systematic whereby; the inherent risk can not be diversified through portfolio management (Anric, 2013).
The first issue concerns the impact of an investment strategy where 40% of the charity's funds are invested in the stock of a FTSE 100 company and 10% each in six other FTSE 100 companies, regardless of what these companies may be. It is also known that the beta of the portfolio against the FTSE All Share Index is 1.03 and the average monthly correlation between the stocks is 0.65.
This research is being carried out to identify and determine what marketing tools are used to maintain the existing level of trust in already established and long-term relationship; investigate how brand image and additional marketing communication tools contribute to trust and credibility in the pre-relationship phase and the negotiation phases.
le that best suits their financial objectives we must take into consideration the time span of their investment window and their investment goals, the investor’s level of “risk aversion” or how much of a potential higher financial return an investor requires in order to
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