Chapter 7 tackles the basic mechanics of portfolio calculations. Articulate how to calculate returns using historical price data.
- Discuss why you would perform this type of analysis in your final project. (CVS company)
- Why would you need to calculate the covariance of the returns?
- What is a normal distribution and why is it important? (Source: pp. 318â€“320)
Part II (CVS)
Prompt: In Milestone Four, you will construct a draft of your interpretation of results. Specifically, the following critical elements must be addressed:
- Calculate the operational performance metrics you selected, and analyze the results of your calculations in terms of the companyâ€™s needs andthe intended purpose of the financial model.
- Discuss how you would most appropriately convey this analysis to the following decision makers, being sure to articulate the distinctionsnecessary to effectively present to the specific audience:
- Your supervisor (Ensure that you defend your rationale.)
- Your horizontal managers and/or colleagues (Ensure that you defend your rationale.)
- The financial institution considering granting you a line of credit (Ensure that you defend your rationale.)