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Taller De Finanzas Corporativas
Docente: David Gutierrez T.

Guia 1 Taller de Finanzas Corporativas

Traduzca el siguiente caso y responda las preguntas 1 a la 3

Al.EX SHARPE"S PORTFOUO

On Friday, January 26, 2007 Alex Sharpe sat in her home offiee and pondered her investment strategy,
During her MBA program, Sharpe had lesmed thar in an effieient market investors should buy and hold
the 'marke! portfolio' because no other portfolio can offer the same expected retum ata Iower risk, Since
the Standard & Poor's (S&P) 500 wes the mo t commonly used benehmark for the overall U.S. stock
market, Sharpe had invested her children's educational savings in the Vangnard 500 Index Fund, a no-load
mnrual fund construeted to rrack the performance of the S&P 500.

The S&P 500 index con ists of 500 stocks chosen for market ize, liquidity and industry grouping, runong
other factors, This index is meant to reflecr the risk/remm characteristics of large-cap stocks. The S&P
500 is a marker-value-weighted index, i.e., each stock 's weight in the index is proportionate to its market
value, There were a number of financia] products avaílable to investors th:at are based on the S&P 500,
including Vanguard's, Inve tors chose these index f1.mds1 in order to provide thernselves wíth a broad
market exposure without buying 500 different tocks,

Indexing represents a form of passíve fund management that offers a low management expense ratio and
had bistericslly outperfermed mot t actively managed mutual. ñrnds, Vanguard is one ofthe world's largest
equity and ñxed income managers, and had been eredired with the pcpularizetion of index fnnds and with
the driving down of eosts across the mntual fund industry, Vanguard is unique in that it is owned by the
funds themselve , whieh better aligns rnanagement's inrerests with those of their bareholders. In contrast,
other mutual-fund have to balance the goals of providing a profit for their ourside owners with rhat of
providing the most cost-effective funds for rheir shareholders,

In arder to achieve higher returns, Sharpe had been considering changing her passive investment straregy
to ene that was more active. She wanted to begin conservarively by adding carefully chosen stocks to her
curren1 equity portfo!io. Ba ed on recem analyst forecast.s, Ms. Sbarpc had narrowed her search ro the
following two compaoies;

11Exchange
tr:aded funds {f:.TFs) !inked lo undérlyin.g indic;e.s: oHer mány of lhe samé ádvantages as the fow-cost, passivety
managed index funds. One of the rea·sons fer their inr:re·a.sí'ngpopulatíty is that they allow for íntraday .tradíng, but for the
Jon,r¡-term inveslor, ihey offer no real advantage .over inde·x fundS.

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Hasbrn (NYSE: HAS) was au American toy aud game company that \Vas the se,cond largest toy 1naker in
the world, next ro MatteL Industry sources expected Hasbro ro introduce severa! innovative coy linked to
summer 2007 block busrers such as Spider Man 3 and The Fantastic Four: Rise of rhe Silver Sm'fer.
Additionally, Masbro's füll-length, live-actíon movie based on the company's enonnously popular
TRANSFORMERS and produced by Tom DeSanto (X-Men and X2: X-Men United) were sdieduled to
open in summer 2007.

R.J. ReynohJs Tobal.'co Compa11y (RJR) was the econd.Jargest tobacc-0 fim1 in the workl, with a share of
approxímately 30 per cent of the U.S. cigarette market. RJ. Reyn.olds was a wholly owned sub idiary of
Reynoids American Ine. (NYSE: RAI). The company faced sorne unique challenges; for exampie, most
consumer-product companies did not have to spend millions of dollars annually on adve.rtisi.ng aimed at
discourag.ing use of their product for consumers under the age of" .18. R.J. Reynolds liad been u~ject to
significam litigation for many decades, but the company had a stroug track roeord in defonding tobacco-
related cases in court and a snred its shareholders thar it would continue to take appropriate steps to
mainrnin a suecessful litigatio1t record.

RISK ANO RETURN

TI1e last tive years wortb of mouthJy retuirns for the Vanguard 500 Index Fund, Hasbro and R.J. Reynolds
are prnvided in Exhibit 1. In adcli!ion to comparing _the ren~rns on the individual c~mponems of her
portfolio, Sharpe also ·wanted to fully compare rl1e 11sk prohles of tlle two compames ro that of 1he
Vanguard Fund. She wanted w ensure that the expected retum of her new portfolio would provide
adequatc con1pensation for taking on any new risky assets.