The annual expected return for Coke is 0.1307, while the annual expected for Pepsi Company is 0.0482. This means that Coke offers an expected higher return for an investor that Pepsi Company. However, the investment that an individual is willing to make is also measured by the risk attached to the investment. The risk that is attached to an investment means the potential variation of actual returns from expected returns, a factor that is measured by the variance and standard deviation of an asset or portfolio. From an analysis of Coke and Pepsi Companies, it is evident that Pepsi has a higher standard deviation and variance, albeit by a small percentage. The standard deviation and variance for Pepsi are 0.048 and 0.0024 respectively, while the standard deviation and variance for Coke are 0.046 and 0.0027 respectively. This means that Pepsi’s stock has a higher deviation from expected return, so an investor who is risk averse would prefer to invest in Coke. The other factor that is used to determine the expected return of a stock is the beta, which refers to the relative volatility of the stock to the market. From the analysis, it is evident that Coke has a higher beta of 0.54 compared to Pepsi’s beta of 0.52, which indicates that Coke’s Stock is more volatile in the market. The covariance of two stocks in a market indicates that extent to which the returns for the two investments move in relation to each other. The covariance for Coke and Pepsi is low at 0.002, which means that the stocks co-vary. An investor with an aim of diversifying stock should not invest in the two stocks together. The correlation of stocks refers to the extent to which the prices of the two stocks affect each other, and from the analysis, a correlation of 0.7 indicates that the prices of the two stocks are strongly correlated, since the two stocks are strong competitors. Coke and the Market The annual return for Coke is higher than the annual return displayed by the market, which indicates that Coke is performing better than the market. The annual return for coke stands at 0.1307, while the annual return for the market is -0.009. However, the market has a lower risk than Coke, as can be seen from the standard deviations of the two portfolios. The variance and standard deviations for the two are 0.0027 and 0.0467 respectively for Coke and 0.0030 and 0.0214 respectively for the market. This indicates that Coke has a higher chance of risk than the market, which would be the ideal choice for a risk indifferent investor. The covariance of
Stock Portfolio Analysis Coke and Pepsi Investment in a firm’s stock is usually done with the ulterior motive of earning a profit or good return on the original investment. The earning from a stock is usually measured in terms of the monthly return or annual average return…
A detailed investment analysis has been done throughout this project. A portfolio of 10 geographically diversified stocks was chosen to build an equity portfolio of $10,000,000. This total investment was hold for the duration of four weeks to track and evaluate the performance of each stock as well as the total portfolio or the fund.
The company distributes over 500 non-alcoholic beverage brands. Coca-Cola owns and markets four of the top five non-alcoholic sparkling beverage brands in the world including Coca-Cola, Diet Coke, Fanta and Sprite.
The following literature would shed particular light on introducing the two company campaigns used to penetrate the Indian market and the problems faced in doing this. This paper would also give appropriate suggestions to those highlighted difficulties and hence come up with possible and alternated solutions while simultaneously providing other recommendations as well.
Redbox is an American company that has its scope of business in the rental of DVDs, Blu-Ray Discs, and also video games using fully automated retail kiosks. Redbox possessed over 33,000 kiosks in over 27,800 locations. Redbox, as a subsidiary of Coinstar Inc., constituted 34.5% market share of discs rented, as of the second quarter 2011.
The benefit of the strategy adopted from 2007 onwards. The return on the three asset portfolio: rp = wara + wbrb + wc rc Whereby rp is the return. ra is the return and wa is the weight on asset a. rb is the return and wb is the weight on asset b. rc is the return and wc is the weight on asset c.
Soft drinks may further de categorized under carbonated drinks and non-carbonated drinks (Daft, 2010). The major players in the soft drinks industry are Coca Cola and Pepsi, which virtually command more than half of the market. In essence, the products from the two companies occupy large shelf space, often covering more space than real food products like meat and dairy.
There are now hundreds of product brands that belong to the business of PepsiCo Inc. all around the world in nearly 200 countries. But the main brands are Pepsi, Mountain Dew, Mirinda, 7-Up, Mist, Lipton, Frito Lay, Topicana, Quaker, and Gatorade. As of the latest 2011 Annual Report, the company’s number of employees has reached 285,000 with total annual revenue of $ 65 billion.
He also included a certain weed extract from Brazil. He then took it to Jacob’s pharmacy, where he added carbonated water and sold the drink for $1. Later, his associate and accountant (Frank Robinson) proposed its current name. Moreover,
However, it is possible to re-launch the product again through intensive marketing and flavor changes.
The company’s first priority is to build and manage its brand through the yet to be established Brand Charter. Above all, the
Secondly, English being my second language made it even a little bit harder since every course work was written and translated in English. Despite that, I have gotten used to the food and secondly, my classmates have helped me a lot with my reading
2 pages (500 words)Term Paper
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