hLLp//wwwLradlngeconomlcscom/8llllng/AnalyLlcsaspx?
Sourceuownload8uLLonlnCharL
Are u still can do it in $130 ?
II so I will hire you, but put in mind I only have 15 hours Ior this. No matter the long oI the
memo, but please make sure to send the excel sheet with it.
Hired. Please make an EXCEL sheet Ior calculations. Word Ior the report( Memo ) . Here is an
email Irom the teacher about the case study, please consider it when you writte the memo.
---------------------------------------------------------------
We have to choose two stocks Irom diIIerent industry
I chose GAP and COCA COLA.
We have to provide an EXCEL sheet which includes our calculations
As a Iirst step we have to go to Yahoo Finance and write our company then goes to Historical
Prices then choose the dates. We just calculate the adjusted close.
---------------------------------------------------------------------------------------------------------------------
-------------------
As discussed in prior classes, I would like your case-study reports organized as Iollows:
1. Executive Summary - High level overview oI your Iindings / conclusions
2. Short Background - What are you attempting to do and why? What is your objective? Can also
provide key deIinitions in this section as well.
3. Analysis - Here is where you provide the step-by-step process Ior creating your investement
opportunity set.
4. Conclusion - Final thoughts and conclusions regarding the implications and potential
investment strategies related to your investment opportunity set.
Attached.
Please brother try to Iinish it in less than 15 hrs.
As I said, iI the work is completed very well, I will give 5-star with very strong notes.
Hi Sir,
I hope you doing well ... Here is a casa study, need to be done in two days. I will promise to give
5-star and very strong notes.
Case Study #2 Individual Project
Investment Opportunity Set Ior a Two Asset PortIolio
The purpose oI this case study is to analyze the investment opportunity set Ior a two-asset
portIolio. You will be required to select two stocks and complete an analysis over the period July
1, 2010 June 30, 2011.
Assignment is to write a memo with a detailed 'step by step overview oI the process used to
create the investment opportunity set and provide an analysis regarding the resulting investment
opportunity set you created. In addition to describing the steps and providing exhibits to illustrate
the creation oI the investment opportunity set, the implication oI the Iollowing key variables will
also need to be explained:
o CAPM equation
o Risk Free Rate
o Risk Premium
o Beta
o Required Rate oI Return
For each oI the bullets above, I want an explanation as to the meaning and implication oI the
variable or equation. Please write as iI I have very little knowledge oI these concepts and explain
clearly.
Detailed Steps
As discussed in class, steps will include:
1. Obtaining daily market returns Ior two stocks oI your choosing and S&P500 through yahoo
Iinance Ior the period July 1, 2010 June 30, 2011. (hint: Yahoo will give you adjusted closing
price, you will need to calculated daily holding period returns).
2. Calculate Beta Ior each stock using linear regression analysis (show in exhibit)
3. Calculate expected return Ior two asset portIolio using 10 increments (hint: need to use
CAPM, however, in order to use CAPM you need Beta, RFR, and MRP). For this analysis,
assume risk premium 7 (historical inIormation actually suggest MRP 8.5 but we will
assume 7).
4. Calculate the overall portIolio standard deviation or 'risk oI the portIolio. Use 10
increments Ior the weights oI the assets (hint: you will need to calculate variance and std dev oI
each stock and the correlation coeIIicient). (Another Hint: your expected return in #3 is in years,
and your standard dev is in days. You will need to convert daily std dev to yearly std dev..how
would you do this? How many days in the year?)
5. Display investment opportunity set graphically and explain implications and potential
investment strategies to consider.
Case Study #2 Memo due on November 1st. Please email. Due at the same time is your excel
sheet with exported data. Data must be in the SAME Iormat as the example shown on
blackboard.
