Person J recently joined an investment firm named Company CW. His boss, Person P was taking about the investment portfolio. Person P is concerned about the systematic risks of potential investments. The company wants to analyze one such potential investment namely, Company C. A vendor provides data about the stocks. However, the vendor does not disclose the method of calculating the data. Person P wants to know the way in which the analysis is made. Hence, he asks Person J to evaluate Company C. Characters in the case: Company CW: Investment firm Person P: Founder of Company CW Person J: New employee Company C: The potential investment To determine: The monthly returns, average monthly returns, and the standard deviation of Company C, S and P 500, and the 3-month Treasury bill.

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Chapter 13, Problem 1M

Summary Introduction

Case summary:

Person J recently joined an investment firm named Company CW. His boss, Person P was taking about the investment portfolio. Person P is concerned about the systematic risks of potential investments. The company wants to analyze one such potential investment namely, Company C.

A vendor provides data about the stocks. However, the vendor does not disclose the method of calculating the data. Person P wants to know the way in which the analysis is made. Hence, he asks Person J to evaluate Company C.

Characters in the case:

Company CW: Investment firm

Person P: Founder of Company CW

Person J: New employee

Company C: The potential investment

To determine: The monthly returns, average monthly returns, and the standard deviation of Company C, S and P 500, and the 3-month Treasury bill.

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