Developing Robust Asset Allocations1 Working Paper First Version: February 17‚ 2006 Current Version: April 18‚ 2006 Thomas M. Idzorek‚ CFA Director of Research Ibbotson Associates 225 North Michigan Avenue Suite 700 Chicago‚ Illinois 60601-7676 312-616-1620 (Main) 312-616-0404 (Fax) tidzorek@ibbotson.com Abstract Over the last 50 years‚ Markowitz’s mean-variance optimization framework has become the asset allocation model of choice. Unfortunately the model often leads to highly concentrated asset
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(WACC). In our analysis‚ we examine why WACC is important in decision making and we show how WACC for Nike Inc. is calculated correctly. Also‚ we calculate the company’s cost of equity using three different models: the Capital Asset Pricing Model (CAPM)‚ the Dividend Discount Model (DDM) and the Earnings Capitalization Model (EPS/ Price)‚ we analyze their advantages and disadvantages and finally we conclude whether or not an investment in Nike is recommended. Our analysis suggests that Nike Inc
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Abstract The Financial Reporting Council decided in 2002 that Australian would move to International Financial Reporting Standards (IFRS) in 2005. Prior to that‚ Australia had its own standard-setting processes. The introduction of IFRS in Australia replaced the original accounting standards and brought several brand new standards. Until now‚ Australia was the first country with a tradition of its own standard-setting to implement international accounting standards for general purposes. Therefore
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did you measure the cost of debt for each division? Should the debt cost differ across divisions? Why? c. How did you measure the beta of each division? Case Hints and Suggestions The primary objective of this case is to show students how the CAPM is used to compute the cost of capital. Students learn to calculate beta based on comparable companies and to lever betas to adjust for capital structure. Students are asked to determine the appropriate risk-less rate and market risk premium. This
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C/2d. Lt. Insert Name ‚ CAP Cadet Advisor Insert Squadron Date Staff Duty Analysis Achievement 9 – Flight Commander Part A: Overview of Requirements CAP Publications Applicable to Cadet Flight Commander Regulations No CAP regulations are listed for this OPR Pamphlets No CAP pamphlets are listed for this OPR Forms No CAP forms are listed for this OPR Suspense’s Required of Flight Commander The Flight Commander has no suspense’s of his or her own‚ but must manage
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Nike Inc. Cost of Captial Michael Tjandra Anna Ellie Du Background of Nike and North - Point Nike North-Point Revenue $9 Billion from 1997 Mutual Fund Management Firm Net income fallen from $800 Million to $580 Million Invests in fortune 500 companies Market Share fallen from 48% (1997) to 42% (2000) At end of June 2001‚ fund’s year to date returns tops at 6.4% Long term revenue targeted at 8-10% Funds performed extremely well Earning growth is targeted at 15% The stock market in decline
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change/Hr = 185 (Meets NFPA and DEP 31.29.70.31 requirements) Vent Fan Drawing Typical Accessory Compartment Fan Curve • Fan BHP : 5.53 kw • Motor selected- 8 kw • Motor Data: • 4pole - 415V‚3Ph TEFC • Motor ambient Temp. 650 C • Insulation class - H ( Temp raise limited to class B) • Flame proof NEC Class 1 Div 2 Gr C&D Turbine Compartment Fan Curve • Fan BHP : 15.45 kw • Motor selected- 19 kw • Motor Data: • 4pole - 415V‚3Ph TEFC • Motor ambient
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ESTIMATING THE RISK PREMIUM USING HISTORICAL DATA: A CASE OF THE NSE Introduction This study seeks to estimate the risk premium of a company using historical data. Analysts use historical data to estimate the risk premium of a company’s equity. This is because the historical data is readily available from the company’s financial statements and the securities exchanges for example the Nairobi Stock Exchange (NSE) in Kenya. Historical market data can be used to compute average returns and a measure
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PaperThis assignment needs to consist of a portfolio analysis in a Microsoft Word document that is not to exceed three pages. You must also include your portfolio analysis in either Word or Excel. You must show how you calculated the answers. 1. Select four stocks from finance.yahoo.com‚ google.finance.com‚ or moneycentral.msn.com. One should be a clothing manufacturer‚ one should be a retailer‚ one should be an automobile manufacturer‚ and one should be a restaurant or food producer. 2. Obtain
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Should I Pursue a Project Management Certification? CAPM® | PMP® | PgMP® | PMI-ACP SM | PMI-RMP® | PMI-SP® www.PMI.org Skilled project managers are in demand around the world. A globally recognized project management certification shows employers that you have the knowledge‚ experience and education to effectively contribute to project team success. The four-step process outlined here will show you the pathway to applying for‚ earning and maintaining a PMI certification—an important investment
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