Stock Case: Dow 30 Case How do you create a diversified stock portfolio? Introduction Our goal was to create an optimal diversified portfolio consisting of the Dow Jones Index. We used the modern portfolio theory which maximizes expected portfolio return for the amount of risk taken by taking the stock weights in to consideration. Our group consisted of risk averse investors; therefore we diversified our portfolio with all 30 Dow Jones stocks because we wanted to achieve an acceptable return
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A stock market or equity market is a public (a loose network of economic transactions‚ not a physical facility or discrete) entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the start of October 2008.The total world derivatives market has been estimated at about $791 trillion face or nominal value‚[2]
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Common stock‚ and Preferred Stock Higher return means higher risk. People use excess money to invest in a corporation. It is a good way gain more money than put money into the saving account to get a little interest. Before you invest you should analyze the characteristics of corporate bonds‚ common stock‚ and preferred stock; and also be aware of their advantages and disadvantages. The corporate bonds are issued by corporations. They are used to increase capital for issuing companies. They
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Definition of ’Stock Market Crash’ A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events‚ economic crisis or the collapse of a long-term speculative bubble. Well-known U.S. stock market crashes include the market crash of 1929 and Black Monday (1987). Investopedia explains ’Stock Market Crash’ Stock market crashes wipe out equity-investment values and are most harmful to those who rely on investment returns for retirement
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How to Value Bonds 1. What is the present value of a 10-year‚ pure discount bond paying $1‚000 at maturity if the appropriate interest rate is: a. 5 percent? b. 10 percent? c. 15 percent? 2. Microhard has issued a bond with the following characteristics: Principal: $1‚000 Time to maturity: 20 years Coupon rate: 8 percent‚ compounded semiannually Semiannual payments Calculate the price of this bond if the stated annual
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The board of directors is responsible for directing all of the significant activities of the entity including the approval of operating budgets‚ marketing and sales plans‚ capital requirements‚ and distribution channels. Each partner has an equal vote on all matters involving the venture and equal representation on the board of directors. The board of directors has four positions; Banana designates two‚ while Berry designates the other two. In the event that the two parties cannot reach an agreement
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the top five FMCG companies in India and is positioned successfully on the specialist herbal platform. Dabur has proven its expertise in the fields of health care‚ personal care‚ homecare and foods. The company was founded by Dr. S. K. Burman in 1884 as small pharmacy in Calcutta (now Kolkata)‚ India. And is now led by his great grandson Vivek C. Burman‚ who is the Chairman of Dabur India Limited and the senior most representative of the Burman family in the company. The company headquarters are
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AUTOZONE Q#1. How has AutoZone’s stock price performed over the previous five years? What other financial measures can you cite that are consistent with the stock price performance? AutoZone’s shareholders had enjoyed strong price appreciation since 1997‚ with an average annual return of 11.5%. Over the previous five years‚ AutoZone’s stock price has increased dramatically. On February 1. 2012 the stock price was $348 compared to the $125 on February 1. 2007. The strong price appreciation
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The Poisson probability distribution‚ named after the French mathematician Siméon-Denis. Poisson is another important probability distribution of a discrete random variable that has a large number of applications. Suppose a washing machine in a Laundromat breaks down an average of three times a month. We may want to find the probability of exactly two breakdowns during the next month. This is an example of a Poisson probability distribution problem. Each breakdown is called an occurrence in Poisson
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economy continued to grow weaker. The stock market had been falling at such a rapid pace‚ that it had become questionable on whether or not the United States would be able to recover‚ because it had led the United States into a depressing period in history. The stock market had officially reached it’s lowest point on October 29‚ 1929. Leading up to this day‚ there were several stock markets across the country that had begun to lose value of majority of their stocks‚ compared to the beginning of the decade
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