MGMT 3610 Lecture Notes - Lecture 11: Standard Deviation, Risk Aversion, Financial Statement

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oneclass2020

4 Jan 2021

School

Cal State East Bay, CSU East Bay, CSUEB

Department

Management

Course

MGMT 3610

Professor

joshua

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The best method for creating a diversified p[portfolio is using the swensen portfolio (swensen, This portfolio supports an equity-oriented portfolio that is well-diversified rewarding the investors who have the confidence of staying on the track. The portfolio is the result of the yale endowment strategy. 15 % is invested in the international stocks. 30 % is invested in the intermediate bonds. Pictorially it is represented as below allocation below asset is done as. The listed below are the stocks along with their current price and previous. 1-year and 5-year rates of return in the form of a graph. The difference between portfolio risk and stand-alone risk: Definition: the risk a creditor will face is an asset"s standalone risk if it owned only the one asset. Risk measurements: individual default, individual variance, separate variance coefficient, etc. Diversification: the undiversified risk of specific assets measures the autonomous risk. Danger consideration: the overall asset considers an asset"s autonomous danger (choueifaty, &

Related Questions

Checking the competitive advantage potential of cross-business strategic fit involves:

A) evaluating a diversified company's profitability relative to competitors.

B) examining a company's costs relative to the costs of its chief rivals in the industry.

C) determining if there are opportunities to exploit outsourcing opportunities by a diversified company's lineup of businesses.

D) considering what competitive value can be generated from a strategic fit.

E) evaluating how much benefit a diversified company can gain from cross-business value chain matchups and resource sharing.

taupegerbil434

A diversified company's business units exhibit good financial resource fit when

A.the resource requirements of each business exactly match the company's available resources.

B.each business is a cash cow.

C.a company has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company's overall strengths. each business is sufficiently profitable to generate an attractive return on invested capital.

D.each business unit produces large internal cash flows over and above what is needed to build and maintain the business.

viridiankoala364

The two biggest drawbacks or disadvantages of unrelated diversification are

A)underemphasizing the importance of resource fit and the strong likelihood of diversifying into businesses that top management does not know all that much about.

B)insufficient cash flows to finance so many different lines of business and a lack of uniformity among the strategies of the businesses it has diversified into.

C)volatile sales and profits and making the mistake of diversifying into too many cash cow businesses.

D)the difficulties of competently managing many different businesses and being without the added source of competitive advantage that cross-business strategic fit provides.

E)over-investing in the achievement of economies of scope and the difficulties of achieving a good mix of cash cow and cash hog businesses.

carmineserval589

MGMT 3610 Lecture Notes - Lecture 11: Standard Deviation, Risk Aversion, Financial Statement

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