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Date S&P 500 REYNOLDS HASBRO PORTFOLIO S&P, REYNOLDS

2-Jan -1.70% 6.13% 1.66% -1.62%


2-Feb -2.31% 9.87% -13.27% -2.19%
2-Mar 4.37% -1.37% 10.55% 4.31%
2-Apr -5.06% 6.87% 1.01% -4.94%
2-May -1.19% 2.17% -4.26% -1.16%
2-Jun -7.15% -23.97% -11.37% -7.32%
2-Jul -8.23% 1.64% -9.66% -8.13%
2-Aug 0.64% 7.71% 7.35% 0.71%
2-Sep -10.14% -31.48% -15.36% -10.35%
2-Oct 7.35% 0.57% -8.18% 7.28%
2-Nov 5.96% -4.81% 25.44% 5.85%
2-Dec -5.50% 9.09% -9.91% -5.35%
3-Jan -2.46% 0.59% 3.90% -2.43%
3-Feb -1.72% -5.78% 0.92% -1.76%
3-Mar 0.89% -19.17% 14.70% 0.69%
3-Apr 8.12% -12.68% 15.19% 7.91%
3-May 6.18% 21.02% 0.06% 6.33%
3-Jun 1.48% 9.15% 9.24% 1.56%
3-Jul 2.18% -4.54% 7.78% 2.11%
3-Aug 2.34% -3.86% -1.86% 2.28%
3-Sep -1.06% 15.78% 0.97% -0.89%
3-Oct 5.89% 21.47% 16.70% 6.05%
3-Nov 1.51% 14.93% 1.42% 1.64%
3-Dec 4.39% 5.34% -3.75% 4.40%
4-Jan 2.20% 1.56% -7.19% 2.19%
4-Feb 1.40% 4.52% 10.73% 1.43%
4-Mar -1.20% -1.99% -0.55% -1.21%
4-Apr -2.56% 7.06% -13.15% -2.46%
4-May 1.24% -13.23% 4.08% 1.10%
4-Jun 2.00% 20.27% -3.36% 2.18%
4-Jul -3.88% 6.45% -4.37% -3.78%
4-Aug 0.11% 4.93% 1.98% 0.16%
4-Sep 1.91% -9.88% 1.46% 1.79%
4-Oct 1.66% 1.21% -5.90% 1.66%
4-Nov 4.43% 9.83% 7.57% 4.48%
4-Dec 3.34% 3.93% 1.84% 3.35%
5-Jan -2.74% 2.32% 1.14% -2.69%
5-Feb 2.09% 1.90% 7.76% 2.09%
5-Mar -1.86% -1.66% -3.17% -1.86%
5-Apr -2.66% -3.25% -7.48% -2.67%
5-May 3.59% 6.34% 6.66% 3.62%
5-Jun 0.99% -4.96% 3.02% 0.93%
5-Jul 4.22% 5.72% 5.53% 4.24%
5-Aug -0.78% 0.76% -5.65% -0.76%
5-Sep 0.93% -1.10% -5.07% 0.91%
5-Oct -2.19% 2.38% -4.12% -2.14%
5-Nov 3.82% 4.73% 8.39% 3.83%
5-Dec 0.19% 7.09% -1.18% 0.26%
6-Jan 3.90% 6.08% 5.05% 3.92%
6-Feb -0.36% 4.96% -4.29% -0.31%
6-Mar 1.76% -0.61% 3.99% 1.74%
6-Apr 1.15% 3.93% -6.59% 1.18%
6-May -3.30% 0.26% -5.94% -3.26%
6-Jun -0.19% 4.88% -2.32% -0.14%
6-Jul -0.28% 9.96% 3.26% -0.18%
6-Aug 2.30% 2.65% 8.56% 2.30%
6-Sep 1.81% -4.76% 12.07% 1.74%
6-Oct 3.60% 1.92% 13.93% 3.58%
6-Nov 2.13% 1.71% 3.20% 2.13%
6-Dec 0.91% 1.91% 1.87% 0.92%
PORTFOLIO S&P, HASBRO
-1.67%
-2.42%
4.43%
-5.00%
-1.22%
-7.19%
-8.24%
0.71%
-10.19%
7.19%
6.15%
-5.54%
-2.40%
-1.69%
1.03%
8.19%
6.12%
1.56%
2.24%
2.30%
-1.04%
6.00%
1.51%
4.31%
2.11%
1.49%
-1.19%
-2.67%
1.27%
1.95%
-3.88%
0.13%
1.91%
1.58%
4.46%
3.33%
-2.70%
2.15%
-1.87%
-2.71%
3.62%
1.01%
4.23%
-0.83%
0.87%
-2.21%
3.87%
0.18%
3.91%
-0.40%
1.78%
1.07%
-3.33%
-0.21%
-0.24%
2.36%
1.91%
3.70%
2.14%
0.92%
Alex Sharpe Case Study Submitted by 19010025

S&P Reynolds Hasbro


From only the R_avg and stdev it seem
R_Avg 6.89% 22.50% 14.21% riskier with higher stdev but has highe
Stdev 12.48% 32.45% 28.11% return.
However, assuming that 1% is invested
R_PORTFOLIO_AVG 7.05% 6.97% them, the portfolio risk is lower in case
Reynolds as compared to Hasbro and t
R_PORTFOLIO_STDEV 12.51% 12.60% return is higher with Reynolds in portfo
Assuming 99% investment in S&P and 1% investment in Reynolds or Hasbro

Beta with Reynolds is lower than 1 me


S&P 500, REYNOLDS S&P 500, HASBRO greatly affected by market change. Has
COVARIANCE 0.0009385487 0.0018111143 as its beta is greater than 1 which mea
market rises it will rise rapidly but conv
BETA 0.7235003192 1.396136128 market drops it will drop rapidly too.

REQUIRED RATE OF RETURN


Assume market risk premium 6.00%
Risk free rate 0.89% Again shows Hasbro is riskier and henc
S&P 500, REYNOLDS 5.23% rate of return is higher
S&P 500, HASBRO 9.27%

REYNOLDS IS LESS RISKIER INVESTMENT. ALEX SHOULD PICK IT


R_avg and stdev it seems Reynolds is
gher stdev but has higher rate of

uming that 1% is invested in either of


tfolio risk is lower in case with
ompared to Hasbro and the rate of
er with Reynolds in portfolio

nolds is lower than 1 meaning its not


ed by market change. Hasbro is riskier
reater than 1 which means that when
will rise rapidly but conversly as
it will drop rapidly too.

Hasbro is riskier and hence the required


is higher